Compute labor rate and efficiency variances; record variances.

(Objs. 5, 6). In the Costing Department of the Apache Ftirniture Company, each desk manufactured requires 30 minutes of sanding labor and 45 minutes of painting labor. The standard wage rate for sanding personnel is $8 per hour, and the standard wage rate for painting personnel is $12 per hour. During May 19X9, 320 desks were manufactured. The sanding labor required was 158 hours at a total cost of $1,264, and the painting labor required was 246 hours at a total cost of $2,007.36.

a. Compute the labor rate variances and the labor efficiency variances for the month. Show whether the variances are favorable or unfavorable.

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

LO.1