Gregor has the following information pertaining to its usage of
direct labor in a recent period:
Total units manufactured
7,200
Total direct labor hours used
22,000
Actual wage rate per hour
$15
Standard wage rate per hour
$14
Standard hours per unit of output
3
A. What is the total $ amount of the direct labor efficiency (or
usage, or quantity) variance for the period? Is it favorable or
unfavorable?
B. What is the total $ amount of the labor rate variance for the
period? Is it favorable or unfavorable?