After evaluating Null Companys manufacturing process, management decides to establish standards of 3 hours of direct labor per unit of product and $16.20 per hour for the labor rate. During October, the company uses 20,000 hours of direct labor at a $328,000 total cost to produce 6,800 units of product. In November, the company uses 23,200 hours of direct labor at a $382,800 total cost to produce 7,200 units of product.

Exercise 23-16 Lomputation and interpretation of labor Vallances LUP2 After evaluating Null Company's manufacturing process, management decides to establish standards of 3 hours of direct la of product and $16.20 per hour for the labor rate. During October, the company uses 20,000 hours of direct labor at a $328 cost to produce 6,800 units of product. In November, the company uses 23,200 hours of direct labor at a $382,800 total co produce 7,200 units of product. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for ea two months. Classify each variance as favorable or unfavorable. October Actual Cost Standard Cost $ 0 November November Actual Cost Standard Cost $ 0 SO