After evaluating Zero Company's manufacturing process, management decides to establish standards of 3.4 hours of direct labor per unit of product and $13 per hour for the labor rate. During October, the company uses 16,600 hours of direct labor at a $221,610 total cost to produce 5,200 units of product. In November, the company uses 26,000 hours of direct labor at a $399,100 total cost to produce 6,500 units of product.
Required: Compute the rate variance, the efficiency variance, and the total direct labor cost variance for each of these two months. (Oct, and Nov.) State whether favorable, unfavorable or zero variance.