EXERCISE 10-7 (20 MINUTES)

3. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
3. The general ledger entry to record the incurrence of direct labor cost for the month is: Work in Process (2,000 hours at $12.00 per hour)... 24,000 Labor Rate Variance (1,975 hours at $0.20 per hour U) ... 395 Labor Efficiency Variance (25 hours at $12.00 per hour F)... 300 Wages Payable (1,975 hours at $12.20 per hour) ... 24,095