ABC Company manufactures a single product with the following standard labour costs for one unit:

Direct labour: 0.5 hour at $6.50

$3.25

During the month of April 5000 units were produced with the follow cost data relating to the month

Direct labour: 3000 hours at $6.25 an hour

$18750

1. Find the labour price and quantity variances for the month

2. Prepare journal entries