The standards for product G78V specify 4.1 direct labor-hours per unit at $12.10 per direct labor-hour. Last month 1,600 units of product G78V were produced using 6,600 direct labor-hours at a total direct labor wage cost of $77,220.Required:a. What was the labor rate variance for the month?b. What was the labor efficiency variance for the month?

a.Labor rate variance = (Actual hours × Actual rate) − (Actual hours × Standard rate)= $77,220 − (6,600 hours × $12.10 per hour)= $77,220 − $79,860= $2,640 Favorableb.Standard Hours = Standard hours per unit × Actual output = 4.1 hours per unit × 1,600 units= 6,560 hoursLabor efficiency variance = (Actual hours − Standard hours) × Standard rate= (6,600 hours − 6,560 hours) × $12.10 per hour= 40 hours × $12.10 per hour= $484 Unfavorable