enlarge to view the questionOptions are (favourable or unfavourable) (less or more) (debited or credited)

((favourable or unfavourable) (fewer or more) (debited or credited)

During the week, Steve's french fry manufacturing facility incurred 2,000 hours of direct labour. Direct labourers were paid $12.20 per hour. The standard hourly labour rate is $12.10. Standards indicate that for the volume of output actually achieved, the factory should have used 2,400 hours. Record the following transactions using a standard cost accounting system: 1. The accumulation of labour costs 2. The assignment of direct labour to production Are the variances favourable or unfavourable? Explain. 1. Let's record the journal entry for the accumulation of labour costs. (Record debits first, then credits. Explanations are not required.) Journal Entry Date Accounts Debit Credit 2. Let's record the journal entry for the assignment of direct labour to production. Journal Entry Accounts Date Debit Credit Are the variances favourable or unfavourable? Explain. The price variance is We can tell this in two ways: 1) Steve's had to pay per hour than the standard rate and 2) the variance account is The efficiency variance is V . We can tell this in two ways: 1) Workers spent hours than the standard number of hours allowed for the actual production level and 2) the variance account is