The Standard Direct Labor Cost for Room Cleaning at Texas

Essay

The standard direct labor cost for room cleaning at Texas Hotels is $2.50 per room ($10 per hour in wages divided by 4 rooms cleaned per hour). Actual labor costs were $11,330 for the month. During the period there were 1,100 labor hours worked; 3,920 rooms were cleaned during the month.
Required:
(Be sure to indicate whether the variance is favorable or unfavorable.)
a. Compute the labor price variance for the period.
b. Compute the labor efficiency variance for the period.