Aztec Inc.'s standard labor cost of producing one unit of product is 2 hours at the rate of $14.00 per hour. During February 52000 hours of labor are incurred at a cost of $13.80 per hour to produce 25000 units of product.
Instructions
(a) Compute the labor price and labor quantity variances.
(b) Journalize the incurrence of the labor costs and the assignment of direct labor to production assuming a standard cost system is used.

Question

Quizplus · Accepted Answer

The Answer of Aztec Inc.'s standard labor cost of producing one unit of product is 2 hours at the rate of $14.00 per hour. During February 52000 hours of labor are incurred at a cost of $13.80 per hour to produce 25000 units of product.
Instructions
(a) Compute the labor price and labor quantity variances.
(b) Journalize the incurrence of the labor costs and the assignment of direct labor to production assuming a standard cost system is used.

Aztec Inc'S Standard Labor Cost of Producing One Unit of Product