Bender Corporation Produced 100 Units of Product AA -Refer to the Figure

question 32

Short Answer

Bender Corporation produced 100 units of Product AA. The total standard and actual costs for materials and direct labour for the 100 units of Product AA are as follows:
$\begin{array}{lll}\text { Materials: }&&\text { Standard } &\text { Actual }\\\text { Standard: } & 200 \text { kilograms at } \$ 3.00 \text { per kilogram } & \$ 600 \\\text { Actual: } & 220 \text { kilograms at } \$ 2.85 \text { per kilogram } &&\$627\\& & \\\text { Direct labour: } & & \\\text { Standard: } & 400 \text { hours at } \$ 15.00 \text { per hour }&6,000 \\\text { Actual: } & 368 \text { hours at } \$ 16.50 \text { per hour } &&6,072\end{array}$

-Refer to the figure.What is the journal entry to record labour variances?
a. $\begin{array}{llr} \text {Work in Process } &6,072\\ \text { Payroll } &&6,072\\\end{array}$

b.
$\begin{array}{llr} \text { Payroll } &6,072\\ \text { Work in Process } &&6,072\\\end{array}$

c.
$\begin{array}{llr} \text { Work in Process } &6,000\\ \text { Labour Efficiency Variance } &552\\ \text { Labour Rate Variance} &&480\\\text { Payroll } &&&&6,072\end{array}$

d.
$\begin{array}{llr} \text { Work in Process } &6,000\\ \text { Labour Rate Variance} &552\\ \text { Labour Efficiency Variance } &&480\\\text { Payroll} &&&6,072\end{array}$

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Definitions:

Outsourcing Restrictions

Policies or practices aimed at limiting the transfer of jobs or tasks to external contractors or locations, often to protect domestic employment.

Union Jobs

Positions of employment that are represented by a labor union, offering benefits such as collective bargaining rights and union protection.

Unionized Employers

Employers that have their workforce represented by a union for the purposes of collective bargaining and labor relations.

Better Benefits

Enhanced or improved employment benefits, including health insurance, retirement plans, or vacation time, often negotiated for by employees or unions.