Nantucket, Inc

Essay

Nantucket, Inc.uses a standard cost system with the following labor standards for one unit of product: standard hours, 12 minutes, and standard wage rate, $10.During December, Nantucket incurred 3,500 hours of direct labor and paid $34,000 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.