Compute labor efficiency and labor rate variances; record variances.

(Objs. 5,6). The standard cost sheet calls for I hour and 45 minutes of labor in the Assembly Department for each boom box manufactured by the Minneapolis Sound Company. The standard labor cost is $14.40 per hour. During December 19X9, a total of 220 boom boxes were assembled, requiring 382 hours at a cost of $5,615.40.

a. Compute the labor efficiency variance and the labor rate variance for the month. Show whether each variance is favorable or unfavorable.

b. Give entries in general journal form to charge the standard labor cost to Work in Process and to record the labor variances for the month.

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