Question: An entity recently set-up its standard costs for its direct labor. The entity sets the benchmark at 2 direct labor hours per product at a

An entity recently set-up its standard costs for its direct labor. The entity sets the benchmark at 2

direct labor hours per product at a standard rate of P100 per direct labor hour.

During the year, the entity manufactured 10 products using 30 direct labor hours at total direct

Labor costs of P2,400.

Question #1

What is the direct labor rate variance?

Question #2

What is the direct labor efficiency variance?

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