The records of Simon Company show the following for February:
Standard labor-hours allowed per unit of output . . . . . . . . . . . . . 1.5
Standard variable overhead rate per
standard direct labor-hour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30
Good units produced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
Actual direct labor-hours worked . . . . . . . . . . . . . . . . . . . . . . 92,000
Actual total direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . $1,975,000
Direct labor efficiency variance . . . . . . . . . . . . . . . . . . . . . . .$40,000 U
Actual variable overhead . . . . . . . . . . . . . . . . . . . . . . . . . $2,560,000
Required
Compute the direct labor and variable overhead price and efficiency variances.