Labor rate and efficiency variances E. R. Kut Company uses four classifications of labor in the production of refrigerators. Labor standards are as follows;

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Labor Classification Metal work....... Electronic components Assembly ...... Finishing & painting Standard Hours (per Unit) Labor Rate (per Hour) $8.00 4463 9.50 7.00 3 7.50 August production yielded 450 refrigerators, with the following actual labor costs: Labor Classification Metal work ..... Electronic components Assembly..... Finishing & painting REQUIRED a. Compute the labor rate variance for August. b. Compute the labor efficiency variance for August. Hours Total Worked Labor Cost 1,940 $15,132 1,650 16,335 2,500 18,000 1,400 10,640