Question: The following labor standards have been established for a particular product:
Standard labor hours per unit of output......0.3 hours
Standard labor rate..................................$15.50 per hour
The following data pertain to operations concerning the product for the last month:
Actual hours worked.........3800
Actual total labor cost.....$59,470
Actual output.......... 12,800 units
Required:
Q1. What is the labor rate variance for the month?
Q2. What is the labor efficiency variance for the month?