Compute the direct labor rate variance

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Question - After evaluating Null Company's manufacturing process, management decides to establish standards of 3 hours of direct labor per unit of product and $16.80 per hour for the labor rate. During October, the company uses 21,500 hours of direct labor at a $365,500 total cost to produce 7,400 units of product. In November, the company uses 23,800 hours of direct labor at a $406,980 total cost to produce 7,800 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.

Reference no: EM132052545

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