Compute the labor efficiency variance

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Question - Fabrications specializes in garage doors for homes. The standard quantity of direct labor to manufacture a door is 3 hours. The standard hourly wage in this department is P75 per hour. During January, the target 150 doors were produced. The payroll records indicate that 480 hours were worked at a total cost of P34,560.

Required - Compute the following:

i. Labor rate variance

ii. Labor efficiency variance

iii. Total labor variance

Reference no: EM132765070

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