Question - Kendra Company's standard labor cost of producing one unit of Product DD is 4 hours at the rate of $14.88 per hour. During August, 40,800 hours of labor are incurred at a cost of $15.00 per hour to produce 10,000 units of Product DD.
Required -
Compute the total labor variance.
Compute the labor price and quantity variances.
Repeat the previous question, assuming the standard is 4.2 hours of direct labor at $15.19 per hour.