Answer:
<u>Total Labor Variance</u>
rate variance $21,460.00 F
efficiency variance <u> $(17,280.00) U</u>
Total Labor Variance 4,180.00 F
Explanation:
std rate $12.80
actual rate $10.97 (128,300 actual cost /11,700 actual hours)
actual hours 11,700
difference $1.83
rate variance $21,460.00
The difference between actual rate and standard rate is positive, the labor hour cost less. the variance is favorable
std hours 10350.00 (2,300 units x 4.5 hours per unit)
actual hours 11700.00
std rate $12.80
difference -1350.00
efficiency variance $(17,280.00)
The difference is negative, it takes more hours than expected to produce te 2,300 units the variance is unfavorable
<u>Total Labor Variance</u>
rate variance $21,460.00
efficiency variance $(17,280.00)
4,180.00