A: Crane, Inc. uses a standard cost system with the following labor standards for one unit of product: standard hours 0.20 and standard wage rate $ 12. During January, Crane incurred 4,420 hours of direct labor and paid $ 54,145 in wages in production of 20,400 units. Calculate the direct labor rate and efficiency variances and indicate whether the variances are favorable or unfavorable.

B: The following standards for variable manufacturing overhead have been established for Crane, Inc. a manufacturer of reproduction vintage hats.

Standard hours per unit		2.50	hours
Standard variable overhead rate		$ 11.80	per direct labor hour

The following data pertain to operations for the month of July.

Actual direct labor hours		10,300
Actual total variable overhead cost		$ 99,000
Actual production		4,200	units

Calculate the variable overhead spending variance and the variable overhead efficiency variance for July and indicate whether the variances are favorable or unfavorable.