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For direct labor employed in the production of X, compute the direct labor rate variance and the direct labor efficiency varianceCan you help me get started with this assignment?
Company manufactures only one product x. The company uses a standard cost system and has established the following standards per unit of product x:
Standard Quantity Standard Price Standard CostDirect Materials 3.0 lbs. $12 per lb. $36.00Direct Labor 1.2 hrs. $15 per hr. $18.00
During the month of May, the following activity was recorded:1. The company produced 6,000 units2. A total of 21,000 lbs. of material was used at a cost of $241,500.3. Each of 40 persons employed to produce the product x, worked an average of 160 hours at a rate of $16 per hour.
Required:For direct labor employed in the production of X, compute the direct labor rate variance and the direct labor efficiency variance.
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