DL variances; journal entries Information on Hanleys direct labor costs for January is as follows:

Actual direct labor rate	$7.50
Standard direct labor hours allowed	5,400
Actual direct labor hours	6,000
Labor rate variance	$3,300	Favorable

a. Compute the standard direct labor rate in January. $Answer

b. Compute the labor efficiency variance in January. Note: Do not use a negative sign with your answer. Labor efficiency variance $Answer

AnswerFavorableUnfavorableNeither favorable or unfavorable

c. Prepare the journal entry to accrue direct labor cost and to record the labor variances for January. Note: Record any multiple debits or any multiple credits in alphabetical order by account name.

Account	Debit	Credit
Accounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory
Accounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory
Accounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory
Accounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory
To record labor variances