At the beginning of last year, Creative Productions set direct labor standards of 2 hours at $25

Question:

At the beginning of last year, Creative Productions set direct labor standards of 2 hours at $25 per hour for each product produced. During the year, 1,700 direct labor hours were actually worked at an average cost of $26 per hour. Using this information and the applicable information in E6A, calculate the company's direct labor rate and efficiency variances for the year.