Andora Company reported the following information for the month of November. The standard cost of labor for the month was $37,800, but actual wages paid were $40,400. Andora has calculated its direct labor rate and efficiency variances to be $650 favorable and $3,250 unfavorable, respectively.
Prepare the necessary journal entry to record Andora’s direct labor cost for the month, assuming that standard labor costs are recorded directly to Cost of Good Sold. (If no entry is required for a transaction/event, select “No Journal Entry Required” in the first account field.)