Item$6$

Item $6$

Using the following direct labor information, calculate the direct labor rate variance and the direct labor efficiency variance. Indicate whether each variance is favorable or unfavorable.

Standard rate of direct labor $ $76$ per hour

Standard hours of direct labor for actual units produced $12,340$

Actual hours of direct labor used $12,825$

Actual rate of direct labor $ $79$ per hour

AH $=$ Actual Hours

SH $=$ Standard Hours

AR $=$ Actual Rate

SR $=$ Standard Rate