4. The Haney Company has a standard costing system. Variable manufacturing overhead is applied on the basis of direct labor-hours. The following data are available for January: Actual variable manufacturing overhead: $25,500 Actual direct labor-hours worked: 5,800 Variable overhead spending(rate) variance: $600 Favorable Variable overhead efficiency variance: $2,475 Unfavorable The standard hours allowed for January production is (Worth 4 pts.):

(Appendix for question 5) Santiesteban Corporation's standard wage rate is $13.00 per direct labor-hour (DLH) and according to the standards, each unit of output requires 7.9 DLHs. In March, 8,600 units were produced, the actual wage rate was $12.30 per DLH, and the actual hours were 65,600 DLHs.

5. What is the journal entry to record the incurrence of direct labor costs in March? (Worth 4 pts.)