Keck Company’s direct labor costs to manufacture its only product in October follow:

Standard direct labor hours per unit of product ...... 1.5

Number of finished units produced ............ 10,000

Standard wage rate per direct labor hour .........$16

Total payroll for direct labor ............. $207,000

Wage paid per direct labor hour .............$18

Differences in hourly wage rates reflect skill levels of workers.

Required

Determine the following for October:

1. Direct labor rate variance.

2. Direct labor efficiency variance.

3. Production manager’s performance in managing direct labor costs.