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Question - Entry for factory labor costs
The weekly time tickets indicate the following distribution of labor hours for three direct labor employees:
Hours
Job 301
Job 302
Job 303
Process Improvement
Tom Couro
10
15
13
2
David Clancy
12
14
Jose Cano
11
1
The direct labor rate earned per hour by the three employees is as follows:
The process improvement category includes training, quality improvement, and other indirect tasks.
Require - Journalize the entry to record the factory labor costs for the week.
Calculate net present value of each of the options and determine which option Cook should select using the NPV criterion.
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