Reference no: EM131596057

Question - After evaluating Null Company's manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $16.90 per hour for the labor rate. During October, the company uses 14,600 hours of direct labor at a $249,660 total cost to produce 7,500 units of product. In November, the company uses 23,900 hours of direct labor at a $411,080 total cost to produce 7,900 units of product.

Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months.