During the week, the Spartan Restaurant Group's French fry manufacturing facility incurred 1,500 hours of direct labor. Direct laborers were paid $12.20 per hour. The standard hourly labor rate is $11.80. Standards indicate that for the volume of output actually achieved, the factory should have used 2,200 hours.
Requirements
1. Record the labor transactions using a standard cost accounting system.
2. Are the variances favorable or unfavorable? Explain.