Exercise 23-5 Computation and interpretation of labor variances LO P2 After evaluating Null Company’s manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $15.70 per hour for the labor rate. During October, the company uses 12,000 hours of direct labor at a $190,800 total cost to produce 6,300 units of product. In November, the company uses 22,700 hours of direct labor at a $363,200 total cost to produce 6,700 units of product. (1) Compute the rate variance, the efficiency variance, and the total direct labor cost variance for each of these two months. (Round your "AR" and "SR" answers to 2 decimal places.)

Exercise 23-5 Computation and interpretation of labor variances LO P2

After evaluating Null Company’s manufacturing process, management decides to establish standards of 2 hours of direct labor per unit of product and $15.70 per hour for the labor rate. During October, the company uses 12,000 hours of direct labor at a $190,800 total cost to produce 6,300 units of product. In November, the company uses 22,700 hours of direct labor at a $363,200 total cost to produce 6,700 units of product.

  

(1)	Compute the rate variance, the efficiency variance, and the total direct labor cost variance for each of these two months. (Round your "AR" and "SR" answers to 2 decimal places.)