Benanti Company produces tires for all-terrain vehicles. During the year, 660,000 wheels were produced. The actual labour

Question:

Benanti Company produces tires for all-terrain vehicles. During the year, 660,000 wheels were produced. The actual labour used was 360,000 hours at $14.25 per hour. Benanti has the following labour standard: 0.5 hour at $15.50.
Required:
1. Compute the labour rate variance.
2. Compute the labour efficiency variance.