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Question - Lewis Company's standard labor cost of producing one unit of product DD is 4 hour at the rate of $12.00 per hour. During August, 40,600 hours of llabor are incurred at a cost of $12.'15 per hour to product 10,000 units of product DD.
Instructions -
(a) Compute the total labor variance.
(b) Compute the labor price and quantity variances.
(c) Repeat (b), assuming the standard is 4.1 hours of direct labor at $12.25 per hour.
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