Information regarding Maxwell’s direct labor cost for the month of January follows:
Direct labor hourly rate paid................................................................................$28.50
Total standard direct labor hours for units produced this period..................11,000
Direct labor hours actually worked.....................................................................10,800
Direct labor rate variance................................................................$16,000 favorable

Required

Compute the following:

1. Standard direct labor wage rate per hour, rounded to 2 decimal places, in January.

2. Direct labor efficiency variance for January; round your answer to the nearest whole dollar. Was this variance favorable (F) or unfavorable (U)?