Question: 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

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.

(1)

Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months.

October

Actual Cost	0		0	Standard Cost



	$0	0	$0

		$0
		0


November

Actual Cost	0		0	Standard Cost



	$0	0	$0

		$0
		0

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