required 2.20 standard direct labor hours. There were 11,500 actual hours used in the Assembly Department during March at an actual rate of $17.60 per hour. The standard direct labor rate is $18.00 per hour. Assuming direct labor for a month is paid on the fifth day of the following month, journalize the direct labor in the Assembly Department on March 31.
Answer:
Mar. 31 Work in Process
1
Direct Labor Time Variance 9,000
Direct Labor Rate Variance 4,600
Wages Payable
1
5,000 × 2.20 hrs. × $18.00
Direct labor time variance: (11,500 – 11,000) × $18.00 = $9,000 U
Direct labor rate variance: ($17.60 – $18.00) × 11,500 = $4,600 F
2
11,500 hours × $17.60 per hour