8 A company reports the following information for its direct labor. Actual hours of direct labor used 60, 000 3.12 Actual rate of direct labor per hour $ 16 points Standard rate of direct labor per hour $ 15 Standard hours of direct labor for units produced 61, 000 AH = Actual Hours Hint SH = Standard Hours AR = Actual Rate SR = Standard Rate Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable. Actual Cost Standard Cost AH X AR AH X SR 60,000 X $ 2.00 13 X $ 1,200.00 $ 120,000 $ 15,600 $ 104,400 $ 0 $ 104,400 0