PROBLEMS $($continued$)$

$45.$ Variance Analysis for Direct Materials, Direct Labor, and Variable Overhead $($continued$)$

b$.$ As shown below, the labor rate variance is $.$

As shown below, the labor efficiency variance is $.$

Actual Hours Standard Labor Costs

Actual Labor Costs at Standard Rate $($Flexible Budget$)$

$=$ AH $\backslash$times AR AH $\backslash$times SR $=$ SH $\backslash$times SR

hours $\backslash$times per hour hours $\backslash$times per hour hours $\backslash$times per hour

$===$

labor rate variance labor efficiency

variance