The Chase Company’s budget for April called for production of 7,000 units. At that level of activity, direct labour was budgeted at $168,000. During April, 7,200 units were produced. Labour was paid $12.20 per hour, resulting in an unfavourable labour price variance of $2,860. The total direct labour variance was $1,660 unfavourable.

Required:

A.What was the standard pay rate per direct labour hour?

B. What was the standard number of direct labour hours per unit?

C. What was the actual total number of direct labour hours during April?

D. What was the direct labour efficiency variance for April?

E. Record the journal entries for direct labour.