The Following Labour Standards Have Been Established for a Particular

Essay

The following labour standards have been established for a particular product:

$\begin{array}{l}\begin{array}{lll}\text {Standard labour hours per unit of output }\\\text {Standard labour rate}\\\end{array}\begin{array}{lll}\text {2.8 hours}\\\text {\$ 11.50 per hour}\\\end{array}\end{array}$

The following data pertain to operations concerning the product for the last month:

$\begin{array} { l r } \text { Actual hours worked } & 6,900 \text { hours } \\\text { Actual total labour cost } & \$ 80,385 \\\text { Actual output } & 2,300 \text { units }\end{array}$

Required:

a) What was the labour rate variance for the month?
b) What was the labour efficiency variance for the month?