Task: The records of the Penney Company show the following for February:
Standard Labor hours allowed per unit of output 1.5
Standard variable overhead rate per
standard direct labor hour $30
Good units produced 60,000
Actual direct labor hours worked 92,000
Actual total direct labor $ 1,975,000
Direct labor efficiency variance $40,000 U
Actual variable overhead $2,560,000
REQUIRED:
Compute the direct labor and variable overhead price and efficiency variances.