Obenshain Corporation Manufactures One Product

Essay

Obenshain Corporation manufactures one product. The company uses a standard cost system in which inventories are recorded at their standard costs. The standard cost card for the company's only product is as follows:
During the year, direct labor workers (who were paid in cash) worked 12,880 hours at an average cost of $20.00 per hour on 17,600 units. These units were started and completed during the year.
Required:Completely record the direct labor costs, along with any direct labor variances, in the below worksheet. The beginning balances have been provided for each of the accounts, including the Property, Plant, and Equipment (net) account which is abbreviated as PP&E (net).