A company reports the following information for its direct labor. Actual hours of direct labor used (AH) Actual rate of direct labor per hour (AR) Standard rate of direct labor per hour (SR) Standard hours of direct labor for units produced (SH) 60,000 $ 15 $ 13 61,200 AH = Actual Hours SH - Standard Hours AR - Actual Rate SR - Standard Rate Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable, Compute the direct labor rate and efficiency variances and identify each as favorable or unfavorable. Standard Cost Actual Cost