Delmar Inc. uses a standard cost system. Labor standards are 2.1 hours per widget at $9.40 per hour. During August, Delmar Inc. paid its workers $156,170 for 16,400 hours. Delmar Inc. produced 8,600 widgets during August.

a.Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).)
b. Calculate the direct labor efficiency variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).)

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Actual hoursAH 16400 Actual rateAR 15617016400 9523 Standard hour... View the full answer