Decena Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. Information concerning the direct labor standards for the company$$s only product is as follows:

Inputs Standard Quantity or Hours Standard Price or Rate Standard Cost

Direct labor $0\mathrm{.}90$ hours $ $18\mathrm{.}00$ per hour $16\mathrm{.}20$

During the year, the company assigned direct labor costs to work in process. The direct labor workers $($who were paid in cash$)$ worked $15,830$ hours at an average cost of $$18\mathrm{.}50$ per hour. The company calculated the following direct labor variances for the year:

Labor rate variance $ $7,915$ U

Labor efficiency variance $ $1,800$ F

Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E $($net$)$ stands for Property, Plant, and Equipment net of depreciation.

Cash Raw Materials Work in Process Finished Goods PP&E $($net$)=$ Materials Price Variance Materials Quantity Variance Labor Rate Variance Labor Efficiency Variance FOH Budget Variance FOH Volume Variance Retained Earnings

$1/1$ $ $1,070,000$ $ $54,910$ $ $0$ $ $84,945$ $ $425,600=$ $ $0$ $ $0$ $ $0$ $ $0$ $ $0$ $ $0$ $ $1,635,455$

When recording the direct labor costs, the Work in Process inventory account will increase $($decrease$)$ by: