Warwick Company Has the Following Information Concerning Its Direct Labour

Essay

Warwick Company has the following information concerning its direct labour: $\begin{array}{ll}\text { Direct Labour: }\\\text { Standard Hours } & 7,500 \\\text { Actual Hours } & 7,350 \\\text { Standard Rate } & \$ 16 \\\text { Actual Rate } & \$ 19\end{array}$ Required:
A. Determine the labour rate variance and whether it is favourable or unfavourable.
B. Determine the labour efficiency variance and whether it is favourable or unfavourable.
C. Provide the journal entry for the labour variances.