During $2024$ you incurred $1,700$ direct labor hours $($DLH$)$ at a cost of $$27,200$ while manufacturing the $110$ FNs$.$ The standard DLH quantity is $15DLH$ per FN$.$ The standard rate per DLH is $$15.$

Calculate the efficiency and rate variances for Direct Labor used in $2024.$

How much will COGS change, and in what direction, when these variances are closed out?

Standard DLH $=15$ per FN

Actual $DLH=$

DL Rate

DL Efficiturey

Standerd

Actu

$15DL\frac{H}{p}er$

$110$ FN

$=1650$

$$15-$$$16=$$$1(1700DLH)$

$1650-1700=-50$ ince cred

$=$

$$1700$

DL Rate VAR Unfuucrable