DL variances; journal entries 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. a. Compute the total actual payroll. $Answer b. Compute the labor efficiency variance. Note: Do not use a negative sign with your answer. Labor efficiency variance $Answer AnswerFavorableUnfavorableNeither favorable or unfavorable c. Compute the labor rate variance. Note: Do not use a negative sign with your answer.
DL variances;
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
a. Compute the total actual payroll. $Answer
b. Compute the labor efficiency variance.
Note: Do not use a negative sign with your answer.
Labor efficiency variance $Answer AnswerFavorableUnfavorableNeither favorable or unfavorable
c. Compute the labor rate variance.
Note: Do not use a negative sign with your answer.
Labor rate variance $Answer AnswerFavorableUnfavorableNeither favorable or unfavorable
d. Prepare the entry to assign labor costs to inventory, record the labor variances, and accrue payroll costs.
Note: Record any multiple debits or any multiple credits in alphabetical order by account name.
| Account | Debit | Credit |
|---|---|---|
| AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory | Answer | Answer |
| AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory | Answer | Answer |
| AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory | Answer | Answer |
| AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory | Answer | Answer |
| To record labor variances |
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