Direct labor variances Following are standards developed by OturLan Company for its proposed design department, which is to complete the design for a new line of folding outdoor furniture.

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Standard wage rate Standard hours to complete design $10 per hr. 11,000 hrs. After experiencing some difficulty hiring the needed personnel, the company managed to obtain five designers whose actual cost and output were as follows: Actual wage rate .... Actual hours required to complete design $11.50 per hr. 10,000 hrs.