Lewis Company’s standard labor cost of producing one unit of Product DD is 3.20 hours at the rate of $14.00 per hour. During August, 42,900 hours of labor are incurred at a cost of $14.18 per hour to produce 13,300 units of Product DD.
Compute the total labor variance$._____ unfavorable
Compute the labor price and quantity variances.
Labor price variance$_____unfavorable
Labor quantity variance$_____unfavorable
Compute the labor price and quantity variances, assuming the standard is 3.46 hours of direct labor at $14.35 per hour.
Labor price variance$_____favorable
Labor quantity variance$_____favorable