Calculate labor quantity variance and labor price variance

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Reference no: EM131977263

Problem

Sonesta company used standard costing to determine product cost. One of Sonesta's products has the following labor standards:

Standard hours per unit 5

Standard labor rate per hour $12

During may, Sonesta produced 900 units of the product using 4,760 labor hours at a cost of $57,834

Calculate the labor quantity variance and labor price variance and indicate whether the variance is favorable or unfavorable.

Reference no: EM131977263

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