Question # 1 Standard and the actual costs for direct materials and direct labor are given as under: Standard costs Direct materials​ 8,000 units at total direct material costs Rs. 40,000 Direct labor:​ 7,000 hours at Rs. 6 per hour Actual costs Direct materials​ 8,500 units at Rs. 4.5 per unit Direct labor:​ 6,500 hours at Rs. 6.25 per hour Required c. Entries in general journal to record the above information d. What do you realize whether the overall variation is in favorable or unfavorable?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question # 1

 

Standard and the actual costs for direct materials and direct labor are given as under:

Standard costs

Direct materials​  8,000 units at total direct material costs Rs. 40,000

Direct labor:​  7,000 hours at Rs. 6 per hour

Actual costs

Direct materials​  8,500 units at Rs. 4.5 per unit

Direct labor:​  6,500 hours at Rs. 6.25 per hour

Required

c. Entries in general journal to record the above information
d. What do you realize whether the overall variation is in favorable or unfavorable?

 

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