The following information describes a company’s usage of direct labor in a recent period. Compute the direct labor rate and efficiency variances for the period.
Actual direct labor hours used . . . . . . . . . . . . . . . . . . . . . . 45,000
Actual direct labor rate per hour . . . . . . . . . . . . . . . . . . . . $ 15
Standard direct labor rate per hour . . . . . . . . . . . . . . . . . . $ 14
Standard direct labor hours for units produced . . . . . . . . . 47,000