Answer:
The direct labor rate variance for November is $34,200
Explanation:
To find out the direct labor rate variance, we have to multiply the actual standard rate of direct labor into actual hours of direct labor used
Standard hourly rate of direct labor hour = $14.40
Actual direct labor hours = 5,000
Standard direct labor cost
= 5,000 × $14.40
= $72,000
Total factory wages are $42,000 in which direct labor is 90%
= $42,000 × 90%
= $37,800
Actual direct labor cost = $37,800
Therefore,
Direct labor rate variance = Standard direct labor cost - Actual direct labor cost
Direct labor rate variance
= $72,000 - $37,800
= $34,200
Answer:
Date Account Titles and Explanation Debit Credit
April 5 Inventory $36,000
Accounts Payable $36,000
April 6 Inventory $920
Cash $920
April 7 Equipment $30,500
Accounts Payable $30,500
April 8 Accounts Payable $4,200
Inventory $4,200
April 15 Accounts Payable $31,800
($36,000-$4200)
Inventory $954
($31,800*3%)
Cash $30,846
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