Recording Standards in Accounts The Assembly Department produced 5,000 units of product during March. Each unit 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.

Works in process is $198000

Direct labor time variance is $9000 U

Direct labor rate variance is $4000 F

Wages payable is $202400

Explanation:

Given that:

Unit produced = 5000 units

Direct labor hours = 2.2 hours

Direct labor rate = $18 per hour

Actual hours = 11500 hours

Actual rate = $17.6

Therefore on March 31:

Works in process = Unit produced * direct labor hours * direct labor rate = 5000 * 2.2 hours * $18 per hour = $198000

Direct labor time variance = [Actual hours - (Unit produced * direct labor hours) ] * Direct labor rate = [11500 - (5000 * 2.2 hrs) ] * $18 per hour = $9000 U

Direct labor rate variance = [actual labor rate - direct labor rate] * actual hours = [$17.6 / hr - $18 / hr] * 11500 = $4000 F

Wages payable = Actual hours * Actual rate = $17.6 / hr * 11500 hours = $202400