2. The standard cost of product 5252 includes1.90hours of direct labor at $11.50per hour. The predetermined overhead rate is $22.00per direct labor hour. During July, the company incurred4,000hours of direct labor at an average rate of $11.70per hour and $82,300of manufacturing overhead costs. It produced2,000units.

(a) Compute the total, price, and quantity variances for labor.

Total labor variance $_______________ ________________(Favorable, Neither favorable nor unfavorable, Unfavorable)

Labor price variance $_______________ ________________(Favorable, Neither favorable nor unfavorable, Unfavorable) Labor quantity variance$ $_______________ ________________(Favorable, Neither favorable nor unfavorable, Unfavorable)

(b) Compute the total overhead variance (show computation)

Total overhead variance $ ____________________

3. Monty, Inc. is trying to establish the standard labor cost of a typical oil change. The following data have been collected from time and motion studies conducted over the past month.

Actual time spent on the oil change 1hour

Hourly wage rate $14

Payroll taxes 10% of wage rate

Setup and downtime 17% of actual labor time

Cleanup and rest periods 23% of actual labor time

Fringe benefits 25% of wage rate

(Required and show your solution on the following:

a.Determine the standard direct labor hours per oil change.(Round answer to 2 decimal places, e.g. 2.75.)

Standard direct labor hours per oil change _________ hours

b.Determine the standard direct labor hourly rate.(Round answer to 2 decimal places, e.g. 2.75.)

Standard direct labor hourly rate $___________

c.Determine the standard direct labor cost per oil change. (Round answer to 2 decimal places, e.g. 2.75.)

Standard direct labor cost per oil change $___________

d.If an oil change took 1.5 hours at the standard hourly rate, what was the direct labor quantity variance? (Round answer to 2 decimal places, e.g. 2.75.)

Direct labor quantity variance $ ______________