1. Prepare a schedule that computes the standard costs of direct labor in each production department. Prepare a schedule that computes the standard costs of direct labor in each production department.**DIRECT LABOR**| | Construction Department | Finishing Department ||----------------------------------|-------------------------|--------------------------|| Standard direct-labor cost: | | || **Standard quantity** | _[space]_ | hour | _[space]_ | hour || **Standard rate** | _[space]_ | per hour | _[space]_ | per hour || **Standard cost per guitar** | _[space]_ | per guitar | _[space]_ | per guitar || **Actual output in July** | _[space]_ | guitars | _[space]_ | guitars || **Total standard cost of direct labor in July** | _[blank]_ | _[blank]_ |This table is designed to calculate and organize the standard costs associated with direct labor involved in the Construction and Finishing Departments. Key components such as standard quantity, rate, cost per guitar, and actual output in July are laid out for computational purposes. ### Springsteen Company Guitar Manufacturing ProcessSpringsteen Company manufactures guitars using a standard, job-order cost-accounting system. The process involves two primary production departments:1. **Construction Department**: Here, wooden guitars are constructed by skilled craftsmen and coated with layers of lacquer.2. **Finishing Department**: The guitars move to this department where the bridge and strings are attached. They are then tuned and inspected.#### Production Process Diagram- **Construction Department**: (Basic guitar built from veneered wood.) - Transfers the unfinished product to the next stage. - **Finishing Department**: (Bridge and strings attached; guitar tuned and inspected.) - Completes the final assembly and quality check.### Materials and Labor- Each finished guitar uses seven pounds of veneered wood, with an additional pound generally wasted during production.- The veneered wood costs $12 per pound.- Other necessary parts, such as the bridge and strings, have a fixed price of $15 per guitar.#### Labor Standards- **Construction Department**: - 6 hours of direct labor per guitar at $20 per hour. - **Finishing Department**: - 3 hours of direct labor per guitar at $15 per hour.### Production Details for July1. No beginning or ending work-in-process inventories.2. No initial finished-goods inventory.3. Produced 576 guitars; sold 376 at $400 each.4. Purchased 6,950 pounds of veneered wood at $12.50 per pound.5. Used 5,450 pounds of wood in July.6. Bought parts to complete 676 guitars for $10,140.7. Construction Department used 3,325 direct-labor hours; total labor cost was $63,175.8. Finishing Department used 1,798 direct-labor hours; total labor cost was $28,768.9. No direct-material variances in the Finishing Department.

Name: 1. Prepare a schedule that computes the standard costs of direct labor
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: 1. Prepare a schedule that computes the standard costs of direct labor in each production department. Prepare a schedule that computes the standard costs of direct labor in each production department.**DIRECT LABOR**|