The standard direct labor cost per reservation for Harry€™s Hotel is $3 (= $12 per labor hour ÷ 4 reservations per hour). Actual direct labor costs during the period totaled $45,240. Also during the period, 3,000 labor-hours were worked, and 14,000 reservations were made.
Required
Compute the direct labor price and efficiency variances for the period. (Refer to Exhibit 17.7 for the format touse.)

Actual (AP x AQ) $167 x 120 days Actual Inputs at Standard Price Flexible Budget (SP x Sa) $175 x 120 days - $21,000 $175 x 113 days - $20,040 $19,776 Price variance: $20,040 $21,000 $960 F Efficiency variance: S21,000 $19,775 - $1,226 U 113 staff-days 1,130 transactions 10 tranaactiona per staff-day