The following information is presented for the Picas Manufacturing Company. Direct labor rate standard is $12.

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The following information is presented for the Picas Manufacturing Company.

• Direct labor rate standard is $12.

• Direct labor efficiency standard is two hours per finished unit.

• Budgeted production is 2,200 finished units.

• Production required 4,560 direct labor hours at a cost of $54,036.

• 2,250 finished units of product were produced.

Required:

a. Determine the direct labor rate variance.

b. Determine the direct labor efficiency variance in dollars.

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