How do compute the labor efficiency variance

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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.

Problem 1: How do Compute the following:

  1. Labor rate variance
  2. Labor efficiency variance
  3. Total labor variance

Reference no: EM132755225

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