During the week, the Spartan Restaurant Group’s French fry manufacturing facility incurred 1,500 hours of direct labor. Direct laborers were paid \($16.20\) per hour. The standard hourly labor rate is \($15.80.\) 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.