Labor Variances. Karlsruhe Mueslix Werke manufactures a popular German breakfast cereal. The company adopted a standard cost system that has the following labor standards for 10,000 cartons of Mueslix:

\section*{Required:}
1. Calculate the labor rate variance for each of the four departments.
2. Calculate the labor efficiency variance for each of the four departments.
3. Using T-accounts, show the amounts recorded in the Payroll account, the variance accounts, and the Work in Process account.

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Packaging Total.. Labor cost per carton Department Rate Hours Standard Cost Crushing. DM20 100 DM2,000 Baking.. 12 40 480 Mixing. 16 20 320 12 40 480 200 DM3,280 DM0.328 During September, the company produced 830,000 cartons and had the fol- lowing actual costs and hours: Department Crushing Baking Mixing. Packaging. Total Cost Hours Worked DM159,358 8,400 52,752 3,820 29,172 1,410 29,368 2,653 DM270,650 16,283