Management at Robo Weld Inc. has estimated that each quality control inspector should be able to make an average of 24 inspections per hour. Retired factory supervisors are excellent quality control inspectors because of their familiarity with the products and processes in the plant. Robo Weld management has decided to staff the quality control program with these individuals and has set $20 as the standard hourly rate. During the first month of the new program, 50,040 inspections were made, and the total pay to the inspectors was $38,950 for 2,050 hours of work.

a. Perform a variance analysis for management on the quality control labor cost.

b. Assume that management could hire eight full-time inspectors for a monthly salary of $4,500 each and hire part-timers for the overflow. Each full-time inspector would work 170 hours per month. How would the total cost of this alternative compare to the cost of a 2,050-hour month at the standard rate of $20 per hour?