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?

Direct Labor-hours

Represents the total hours worked directly on the production of goods, important for calculating the labor cost per unit.

Labor Rate Variance

The difference between the actual cost of labor and the standard or expected cost, often analyzed in cost accounting.

Labor Efficiency Variance

Labor Efficiency Variance measures the difference between the actual hours worked and the standard hours expected for the work performed.