Adams's Doll Company produces handmade dolls. The standard amount of time spent on each doll is $1,50$ hours. The standard cost of labor is $$7\mathrm{.}80$ per hour. The company planned to make $8,700$ dolls during the year but actually used $13,650$ hours of labor to make $9,300$ dolls. The payroll amounted to $$109,610.$

Required

a$.$ Should labor variances be based on the planned volume of $8,700$ dolls or the actual volume of $9,300$ dolls?

b$.$ Prepare a table that shows the standard labor price, the actual labor price, the standard labor hours, and the actual labor hours.

c$.$ Compute the labor price variance and indicate whether it is favorable $($F$)$ or unfavorable $($U$),$

d$.$ Compute the labor usage variance and indicate whether it is favorable $($F$)$ or unfavorable $($U$).$

Complete this question by entering your answers in the tabs below.

Req C and D

Should labor variances be based on the planned volume of $8,700$ dolls or the actual volume of $9,300$ dolls?

Labor variances should be based on the