James has the following information pertaining to its usage of direct labor in a recent period: Total direct labor hours worked (AQ) 30,000 Total units manufactured 8,000 Actual wage rate per hour (AP) $16 Standard cost data: Wage rate per hour (SP) $18 Standard hours per unit 4

Required: 1. Calculate the labor efficiency variance for the period. 2. Calculate the labor rate variance for the period. Prepare journal entry to WIP Inventory to record wages expenses for the period including standard cost variances