Martorella Corporation Has Provided the Following Data Concerning Its Direct

question 24

Essay

Martorella Corporation has provided the following data concerning its direct labor costs for October:
Required:
Prepare the journal entry to record the incurrence of direct labor costs.
$\begin{array}{lcl}\text {Standard wage rate.......}&\$ 11.40 & \text { per DLH } \\\text { Standard hours............}&3.6 & \text { DLHs per unit } \\\text {Actual wage rate..........}&\$ 12.20 & \text { per DLH } \\\text { Actual hours...............}&21,100 & \text { DLHs } \\ \text { Actual output............}&6,000 & \text { units }\end{array}$

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Definitions:

Favorable Variances

Differences between actual and budgeted or standard cost figures that are financially beneficial to a company.

Unfavorable Variances

Differences where actual results are worse than expected, often leading to higher costs or lower revenues.

Raw Materials Inventory

The total cost of all the raw materials that are used in the manufacturing process but have not yet been converted into finished goods.

Raw Materials Purchase

The procurement of unprocessed materials used in the manufacturing or production of finished goods.