Calista & Lane, CPAs, set the following standard for its inventory audit of Triumph Co.: 560 hours at an average hourly rate of $250. The firm actually worked 528 hours during the inventory audit process. The total labor variance for the audit was $5,600 unfavorable. d. Prepare the entry to assign labor costs to inventory, record the labor variances, and accrue payroll costs. Account Debit Credit                         To record labor variances     Previous answers for assistance: a. Compute the total actual payroll. $145,600 b. Compute the labor efficiency variance. $8,000 Favorable c. Compute the labor rate variance. $13,600 Unfavorable

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 9P: USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted,...
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Calista & Lane, CPAs, set the following standard for its inventory audit of Triumph Co.: 560 hours at an average hourly rate of $250. The firm actually worked 528 hours during the inventory audit process. The total labor variance for the audit was $5,600 unfavorable.

d. Prepare the entry to assign labor costs to inventory, record the labor variances, and accrue payroll costs.

Account Debit Credit
     
     
     
     
To record labor variances    

Previous answers for assistance:

a. Compute the total actual payroll. $145,600

b. Compute the labor efficiency variance. $8,000 Favorable

c. Compute the labor rate variance. $13,600 Unfavorable

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