Question: Calculate labor rate variance and labor efficiency variance. Item Amount Budgeted hours 1,000 hours Actual hours 1,200 hours Standard rate $100/hour Actual costs $140,000 Requirements:

Calculate labor rate variance and labor efficiency variance.

Item

Amount

Budgeted hours

1,000 hours

Actual hours

1,200 hours

Standard rate

$100/hour

Actual costs

$140,000

  • Requirements:
    1. Calculate the labor rate variance.
    2. Calculate the labor efficiency variance.
    3. Analyze the variances and recommend actions for improvement.

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