Matson Company incurred actual direct labor costs of $70,500 in April for 6,000 direct labor hours, although the standard labor cost for output produced was only $67,200 (6,400 hours at $10.50 per hour).
-Refer to the above data. The journal entry to record direct labor costs relating to work performed in April includes:

Question

Matson Company incurred actual direct labor costs of $70,500 in April for 6,000 direct labor hours, although the standard labor cost for output produced was only $67,200 (6,400 hours at $10.50 per hour).
-Refer to the above data. The journal entry to record direct labor costs 	relating to work performed in April includes:

Quizplus · Accepted Answer

The labor efficiency variance is calculated as (Actual hours - Standard hours) x Standard rate = (6,000 - 6,400) x $10.50 = $4,200. This variance is unfavorable, so it is credited.

Matson Company Incurred Actual Direct Labor Costs of $70,500 in April