Answer:
$529.34 favorable and $1,111 unfavorable
Explanation:
The computation of the direct labor rate variance is shown below:
= Actual Hours × (Actual rate - standard rate)
= 3,781 hours × ($41,066 ÷ 3,781 hours - $11 per hour)
= 3,781 hours × ($10.86 per hour - $11 per hour)
= $529.34 favorable
And, the efficiency variance is
= (Standard hours - Actual hours) × standard rate
where,
Standard hours is
= 18,400 units × 0.2
= 3,680 hours
Actual hours is 3,781 hours
So, the efficiency variance is
= (3,680 hours - 3,781 hours) × $11
= $1,111 unfavorable
