The Following Labour Standards Have Been Established for a Particular

Essay

The following labour standards have been established for a particular product:
$\begin{array}{|l|r|}\hline \text { Standard labour hours per unit of output } & 2.8 \text { hours } \\\hline \text { Standard labour rate } & \$ 11.50 \text { per hour } \\\hline\end{array}$
The following data pertain to operations concerning the product for the last month:
$\begin{array}{|l|r|}\hline \text { Actual hours worked } & 6,900 \text { hours } \\\hline \text { Actual total labour cost } & \$ 80,385 \\\hline \text { Actual output } & 2,300 \text { units } \\\hline\end{array}$
Required:
a)What was the labour rate variance for the month?
b)What was the labour efficiency variance for the month?