Cavy Company accumulated 550 hours of direct labor on Job 345 and 880 hours on Job 777. The direct labor was incurred at a rate of $16 per direct labor hour for Job 345 and $26 per direct labor for Job 777. Journalize the entry to record the flow of labor costs into production. If an amount box does not require an entry, leave it blank.
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.
Cavy Company accumulated 550 hours of direct labor on Job 345 and 880 hours on Job 777. The direct labor was incurred at a rate of $16 per direct labor hour for Job 345 and $26 per direct labor for Job 777.
Cash
Factory Overhead
Wage Expense
Wages Payable
Work in Progree
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