Computing labor efficiency and rate variances. The standard cost sheet calls for 1 hour, 45 minutes of labor in the Assembly Department for each desk manufactured by the New Hampshire Desk Company. The standard labor cost is

$7.20 per hour. During December 19X7, a total of 220 desks were assembled, requiring 382 hours at a cost of $2,807.70. Compute the labor efficiency variance and the labor rate variance for the month. Show whether the variances are favorable or unfavorable.