7.SheridanFamily Instruments makes cellos. During the past year, the company made6,680cellos even though the budget planned for only5,560. The company paid its workers an average of $20per hour, which was $0.50higher than the standard labor rate. The production manager budgets4direct labor hours per cello. During the year, a total of24,800direct labor hours were worked.

(a)Calculate the direct labor rate and efficiency variances.(If variance is zero, select "Not Applicable" and enter 0 for the amounts.)

Direct labor rate variance _______________ is this favorable, unfavorable or neither

Direct labor efficiency variance ____________ Direct labor efficiency variance