During the week, the Heese Restaurant Group’s French fry manufacturing facility incurred 2,100 hours of direct labor. Direct laborers were paid $ 12.40 per hour. The standard hourly labor rate is $ 12.05. Standards indicate that for the volume of output actually achieved, the factory should have used 2,300 hours.

Requirements
1. Record the labor transactions using a standard costs accounting system.
2. Are the variances favorable or unfavorable? Explain.