Figure 10-3

Multiple Choice

Figure 10-3. Bortello Corporation produces high-quality leather boots.The company has a standard cost system and has set the following standards for materials and labor:
During the year Bortello produced 125 boots.Actual leather purchased was 1,700 strips,at $16 per strip.There were no beginning or ending inventories of leather.Actual direct labor was 1,500 hours at $15 per hour.
Refer to Figure 10-3.Calculate the labor rate variance and the labor efficiency variance,respectively.

A) $4,500 U and $3,000 U
B) $4,500 F and $3,000 F
C) $4,500 U and $3,000 F
D) $4,500 F and $3,000 U