QS $21-11($Algo$)$ Direct labor rate and efficiency variances LO P$3$

A company reports the following information for its direct labor.

Actual hours of direct labor used$62,000$Actual rate of direct labor per hour$ $15$Standard rate of direct labor per hour$ $14$Standard hours of direct labor for units produced$63,900$

AH $=$ Actual Hours

SH $=$ Standard Hours

AR $=$ Actual Rate

SR $=$ Standard Rate

Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable. QS $21-11($Algo$)$ Direct labor rate and efficiency variances LO P$3$

A company reports the following information for its direct labor.

$```$

Actual hours of direct labor used

$62,000$

Actual rate of direct labor per hour

Standard rate of direct labor per hour

$ $15$

$ $14$

Standard hours of direct labor for units produced

$63,900$

$```$

AH $=$ Actual Hours

SH $=$ Standard Hours

AR $=$ Actual Rate

SR $=$ Standard Rate

Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable.