Gamblian Company's standard labor cost of producing one unit of product is 2 hours at the rate of $14.00 per hour. During February, 39,000 hours of labor are incurred at a cost of $13.80 per hour to produce 19,000 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

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The Answer of Gamblian Company's standard labor cost of producing one unit of product is 2 hours at the rate of $14.00 per hour. During February, 39,000 hours of labor are incurred at a cost of $13.80 per hour to produce 19,000 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.

Gamblian Company's Standard Labor Cost of Producing One Unit of Product