Summarizing labor costs, efficiency and rate variances, and labor variances. In the Forming Department of the Mason Products Company, two classes of direct labor are used in the manufacturing process. Standard labor costs have been established for each unit of the product as follows:

Instructions 1. Prepare a summary of labor costs for the month of June (Exhibit 4). Show whether the variances are favorable (F) or unfavorable (U)
2. Compute the efficiency and rate variances for each class of labor.
3. Prepare a labor variances summary for the month (Exhibit 5).
4. Give the general journal entry on June 30 19X1, to charge the standard labor cost to production, to remove the actual cost of the labor used from the Factory Payroll Clearing account, and to record the labor efficiency and labor rate variances.
Use Work in Process—Forming Department, 123.

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Standard Standard Rate Labor Class Class DL-1 Hours per Hour thr $11.20 Class DL-2 1 hr 12.00 During the month of June 19X1, a total of 4,040 units were produced. The actual labor costs, by class, were as follows: Labor Class Hours Cost Class DL-1 2,106 $23,587.20 Class DL-2 4,010 49,724.00