Question

The following direct labor standards have been established for product E45O: Standard direct labor hours....... 8.2hrs/unit...

The following direct labor standards have been established for product E45O:

Standard direct labor hours....... 8.2hrs/unit of e45O

Standard Direct labor wage rate.... $13.00/hr


The following data pertains to last month’s operations:

Actual output of e45O...... 1120 units

Actual Direct labor-hours worked.... 9300 hours

Actual direct labor wages paid..... $115,320
  

Required:

a. What was the labor rate variance for the month?
b. What was the labor efficiency variance for the month?

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