The finishing department of Kozart Company produced 25,000 units during October. The standard number of direct labor-hours is two hours per unit. The standard rate per hour is $37.80. During October, 51,250 direct labor-hours were worked, at a total cost of $1,742,500. Required: A. Compute the labor price variance (sometimes called the labor rate variance) for October B. Compute the labor quantity variance (sometimes called the labor efficiency variance) for October. C. Assuming that Kozart's accounting process incorporates variances in the formal accounting records, record a summary of the labor data in a journal entry in keeping with that process. D. Record the journal entry to dispose of any labor variances in terms of closing the variances into cost of goods sold. A Labor price (rate) variance calculation: Actual rate per hour Standard rate per hour Difference Actual number of hours Labor price (rate) variance B Labor quantity (efficiency) variance calculation: Actual quantity of hours Standard quantity of hours Difference Standard rate per hour Labor quantity (efficiency) variance Debit Credit Work in process inventory Labor quantity (efficiency) variance Labor price (rate) variance Payroll summary Debit Credit Labor price (rate) variance Labor quantity (efficiency) variance Cost of goods sold