(Direct labor variances) Prefab Construction Inc. builds standard prefabricated wooden frames for apartment walls. The standard quantity of direct labor is 3.5 hours for each frame at an average standard hourly wage of $14.50. During May 1996, the company produced 520 frames. The payroll records indicated that the carpenters worked 1,950 hours and earned $27,885.

a. What were the standard hours allowed for May construction?

b. Calculate the direct labor variances.

LO1