Compute the LABOR rate variance and the efficiency variance for the following (you do not have to calculate material variances):

Snazzy Jeans, Inc. manufactures designer jeans. The company uses standard costing and has developed the following information about standards for its product:

Materials 2yards per unit; $10 per yard

Labor 0.25 Direct Labour hour per unit; $11 per hour

During Occtober, the company experienced an unanticipated spike in demand and increased production. Although planned production was for 8,000 units, the company actually produced 10,000 units.

In anticipation of the original production volume, 18,000 yards were purchased, at a total cost of $175,000. During the month, 22,000 yards of material were used, and 2,400 direct labor hours were worked, Direct labor cost for the month totaled $27,000.