During the week, the Vittorio Restaurant Group's French fry manufacturing facility incurred 2,000 hours of direct labor. Direct laborers were paid $12.25 per hour. The standard hourly labor rate is $12. Standards indicate that for the volume of output actually achieved, the factory should have used 2,100 hours.
Requirements
1. Record the labor transactions using a standard costs accounting system.
2. Are the variances favorable or unfavorable? Explain.