Refer to the information for Botella Inc. above.
Botella, Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.025 hours. During the month of April, 500,000 bottles were produced using 14,000 labor hours @ $ 9.00. The standard wage rate is $ 8.50 per hour.
Required:
Calculate the labor rate and efficiency variances using the columnar and formula approaches.