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Mordica Companys standard labor cost per unit of output is $33.32 (2.80 hours x $11.90 per hour), During August, the company
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Answer #1

Total labor variance = 1173.60 U + 654.50U

= 2428.10 Unfavorable

Labor price Variance = (SR-AR) *AH

= (11.90 - 12.38)*3695

= 1773.60 Unfavorable

Labor quantity Variance = (SH-AH) *SR

= (2.80*1300 - 3695)*11.90

= 654.50 Unfavorable

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