Cook Company processes and packages frozen seafood. The year just ended was Cook's first year of business and they are preparing financial statements. The immediate issue facing Cook is the treatment of the direct labor costs. Cook set a standard at the beginning of the year that allowed two hours of direct labor for each unit of output. The standard rate for direct labor is $43 per hour. During the year, Cook processed 63,200 units of seafood for the year, of which 5,056 units are in ending finished goods. (There are no work-in- process inventories). Cook used 131,500 hours of labor. Total direct labor costs paid by Cook for the year amounted to $5,007,500. Required: a. & b. What was the direct labor price variance and the direct labor efficiency variance for the year? c. Assume Cook writes off all variances to Cost of Goods Sold. Prepare the entries Cook would make to record and close out the variances. d. Assume Cook prorates all variances to the appropriate accounts. Prepare the entries Cook would make to record and close out the variances. Assume Cook writes off all variances to Cost of Goods Sold. Prepare the entries Cook would make to record and close out the variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the purchase and use of 131,500 hours of direct labor at an actual cost of $5,007,500 and the transfer to work in process at a standard cost of $43 per hour. Note: Enter debits before credits. Event General Journal Debit Credit 1 Assume Cook prorates all variances to the appropriate accounts. Prepare the entries Cook would make to record and close out the variances. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the purchase and use of 131,500 hours of direct labor at an actual cost of $5,007,500 and the transfer to work in process at a standard cost of $43 per hour. Note: Enter debits before credits. Event General Journal Debit Credit 1