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The café needs to know what their direct labor price and efficiency variance is. Their standard direct labor time per item is 0.30 hour, at a price of $13 per hour. The actual results for the production of 2,500 items were 0.25 hour per item, at a price of $10 per hour.
Question a. Calculate the direct labor price variance and indicate favorable or unfavorable
Question b. Calculate the direct labor efficiency variance and indicate favorable or unfavorable
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