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The standard cost of Product YY includes 3 hours of direct labor at $12.00 per hour. The predetermind overhead rate is $20.00 per direct labor hour. During July , the company incurred 3,500 hours of direct labor at an average rate of $12.40 per hour and $71,300 of manufacturing overhead costs. It produced 1,200 units .
(a) Compute the total, price, and quantity variances for labor.
(b) Compute the total overhead variance .
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