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Calculation of Labor rate and efficiency variances.
At the beginning of last year, Diekow Productions set direct labor standard of 20 hours at $15 per hour for each product produced. During the year, 20500 direct labor hours were actually worked at an average cost of $16 per hour. Using this information and the applicable information in E6,calculate Diekow production's direct labor rate and efficiency variances for the year?
If the allowance for doubtful accounts before any necessary adjustment is at $10,000, what adjustment will have to be made at the end of the period?
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