Amos, IncUses a Standard Cost System with the Following Labor Standards

Essay

Amos, Inc.uses a standard cost system with the following labor standards for one unit of product: standard hours 0.2 and standard wage rate $12.During January, Amos incurred 3,700 hours of direct labor and paid $45,325 in wages in production of 18,000 units.
Required:
Calculate the direct labor rate and efficiency variances and indicate whether the variances are favorable or unfavorable.