Journalizing labor entriesThe following direct labor variance analysis was performed tor Morris.RequirementsRecord Morris’s direct labor journal entry (use Wages Payable).Explain what management will do with this variance information. AC X AO$11.00 per DLHrSC X AQ$14.00 per DLHrSC x SQ$14.00 per DLHr1,800 DLHr1,800 DLHr1,350 DLHr$19.800$25,200$18,900EfficiencyVariance$6.300 UCostVariance$5,400 F

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Description: Journalizing labor entriesThe following direct labor variance analysis was performed tor Morris.RequirementsRecord Morris’s direct labor journal entry (use Wages Payable).Explain what management will do with this variance information. AC X AO$11.00 p

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Answered: AC X AO $11.00 per DLHr SC X AQ $14.00…

Business

Accounting

AC X AO $11.00 per DLHr SC X AQ $14.00 per DLHr SC x SQ $14.00 per DLHr 1,800 DLHr 1,800 DLHr 1,350 DLHr $19.800 $25,200 $18,900 Efficiency Variance $6.300 U Cost Variance $5,400 F

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Journalizing labor entries

The following direct labor variance analysis was performed tor Morris.

Requirements

Record Morris’s direct labor journal entry (use Wages Payable).
Explain what management will do with this variance information.

AC X AO
$11.00 per DLHr
SC X AQ
$14.00 per DLHr
SC x SQ
$14.00 per DLHr
1,800 DLHr
1,800 DLHr
1,350 DLHr
$19.800
$25,200
$18,900
Efficiency
Variance
$6.300 U
Cost
Variance
$5,400 F

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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