Foster Furniture uses a standard cost system. One model of sofa has a standard direct labor cost of $111 (10 hours per sofa @ $11.10 per hour). During the first week of October, Foster manufactured 15 of these sofas. Because of illness, one of the regular employees was replaced during that week by a new, untrained employee. Employees worked a total of 157 direct labor hours at an average labor cost of $10.80 per hour on the sofas. The direct labor price variance and the direct labor efficiency variance for the production of the sofas resulted from substituting the untrained employee for the regular skilled worker.

Required: (1) Compute the direct labor price variance and the direct labor efficiency variance.

(2) How much extra direct labor cost was incurred in the production of the sofas because of the substitution of the untrained employee?

 TKY-1