Question
A company has a standard of 2 hours of direct labor per unit produced and $19.0 per hour for the labor rate. During last period, the company used 10,500 hours of direct labor at a $179,500 total cost to produce 4,500 units. Compute the direct labor rate and efficiency variances. Rate Variance: $20,000 unfavorable; Efficiency Variance: $28,500 favorable. Rate Variance: $94,000 unfavorable; Efficiency Variance: $114,000 unfavorable. Rate Variance: $179,500 favorable; Efficiency Variance: $114,000 unfavorable. Rate Variance: $20,000 favorable; Efficiency Variance: $28,500 unfavorable. Rate Variance: $179,500 unfavorable; Efficiency Variance: $114,000 favorable Rate Variance: $20,000 unfavorable; Efficiency Variance: $28,500 favorable. Rate Variance: $94,000 unfavorable; Efficiency Variance: $114,000 unfavorable. Rate Variance: $179,500 favorable; Efficiency Variance: $114,000 unfavorable. Rate Variance: $20,000 favorable; Efficiency Variance: $28,500 unfavorable. Rate Variance: $179,500 unfavorable; Efficiency Variance: $114,000 favorable Rate Variance: $20,000 unfavorable; Efficiency Variance: $28,500 favorable. Rate Variance: $94,000 unfavorable; Efficiency Variance: $114,000 unfavorable. Rate Variance: $179,500 favorable; Efficiency Variance: $114,000 unfavorable. Rate Variance: $20,000 favorable; Efficiency Variance: $28,500 unfavorable. Rate Variance: $179,500 unfavorable; Efficiency Variance: $114,000 favorable
Explanation / Answer
Rate Variance: $94,000 unfavorable; Efficiency Variance: $114,000 unfavorable.