During the week, McCain’s french fry manufacturing facility incurred 2,000 hours of direct labour. Direct labourers were paid $12.25 per hour. The standard hourly labour rate is $12. Standards indicate that for the volume of output actually achieved, the factory should have used 2,100 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.