Question:
Labor Variance Analysis. Hidalgo County Rural Electric Cooperative has determined that when ditch-digging equipment is used, the labor time per foot of underground line installed should be 5 minutes and that the average hourly labor pay rate should be $4.
In June two ditch-digging units installed 4,800 feet of line at a labor cost of $1,435 and at an average hourly rate of $4.10.
Required: The labor rate and efficiency variances.