7. What direct labor cost would be included in the company's planning budget for March? Direct labor: Units produced in Planning Budget (a) Direct labor required per unit (b) Total direct labor hours needed (a) x (b) + (c) Cost per direct labor hour (d) Total direct labor cost included in Planning Budget (c) (d) 10. What is the labor efficiency variance for March? 11. What is the labor spending variance for March? 10) Labor efficiency variance for March SR (AH-SH) Actual quantity of direct labor used (a) Standard quantity allowed (b) Variance (a) - (b) =(c) Standard rate/hour (d) **Labor efficiency variance (c)x(d) ** If actual quantity of direct labor used exceed standard quantity of direct labor allowed, labor efficiency variance would be unfavorable and vice versa. 11) Labor spending variance for March. Labor rate variance (a) Labor efficiency variance (b) Labor spending variance (a) - (b)