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Variance Analysis - Overhead variances, price and efficiency
The standard cost of product 2525 includes 1.83 hours of direct labor at $13.90 per hour. The predetermined overhead rate is $20.60 per direct labor hour. During July, the company incurred 4,260 hours of direct labor at an average rate of $14.60 per hour and $69,276 of manufacturing overhead costs. It produced 1,900 units.
(a) Compute the total, price, and quantity variances for labor.
Total labor variance $ unfavorableLabor price variance $ unfavorableLabor quantity variance $ unfavorable
(b) Compute the total overhead variance.
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