Reference no: EM132951162

You have been given the following per unit information about the production of chain Inc., and are asked to provide the plant manager with information for a meeting with the vice-president of operations with the following per unit data:

Direct labour:

Standard Quantity. 2.5hr

Standard Price $19.00/hr

Actual Quantity 2.75 hrs

Actual Price $18/hr

Production data for the year is as follows:

Actual production (units) 56,000

Required:

Calculate the direct labour rate (also called price) and efficiency (also called usage) variances and use your solution to answer the following questions.

Problem 1: The amount of the direct labour rate variance, also called the direct labour price variance, is $____________.

Problem 2: The amount of the direct labour efficiency variance, also called the direct labour usage variance, is $____________.