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	19,800
Actual direct labor hours	22,000
Labor rate variance	$12,100	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
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory	Answer	Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory	Answer	Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory	Answer	Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory	Answer	Answer
To record labor variances