Compute the total-price and quantity variances for labor


Response to the following problem:

The standard cost of product 5252 includes 1.9 hours of direct labor at $14.00 per hour. The predetermined overhead rate is $22.00 per direct labor hour. During July, the company incurred 4,100 hours of direct labor at an average rate of $14.30 per hour and $81,300 of manufacturing overhead costs. It produced 2,000 units.

(a) Compute the total, price, and quantity variances for labor.

(b) Compute the total overhead variance.

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Cost Accounting: Compute the total-price and quantity variances for labor
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