The Standards for Product Q58W Specify 8

question 34

Essay

The standards for product Q58W specify 8.4 direct labor-hours per unit at $14.00 per direct labor-hour. Last month 400 units of product Q58W were produced using 2,800 direct labor-hours at a total direct labor wage cost of $41,020.
Required:
a. What was the labor rate variance for the month?
b. What was the labor efficiency variance for the month?
c. Prepare a journal entry to record direct labor costs during the month, including the direct labor variances.

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Definitions:

Monetary Rewards

Financial or material compensations given to employees as recognition for their work or performance.

Micromanagement

A controlling style of management where a leader closely observes or controls the work of their subordinates, often with excessive attention to minor details.

Competition

The rivalry between entities for resources, recognition, or victory in which superior performance is rewarded.

Punishments

Consequences applied in response to undesirable behavior, intended to reduce the likelihood of that behavior occurring again.