= AH Actual Hours SH AR Actual Rate SR Standard Hours Standard Rate Compute the direct labor rate and efficiency variances for the period and classify each as favorable, unfavorable or no variance. Actual Cost Standard Cost QS 21-11 Direct labor variances LO P3 The following information describes a company's direct labor usage in a recent period. Actual direct labor hours used (AH) Actual direct labor rate per hour (AR) Standard direct labor rate per hour (SR) Standard direct labor hours for units produced (SH) AH Actual Hours SH Standard Hours AR Actual Rate SR Standard Rate 72,000 $ 15 $ 14 73,200 Compute the direct labor rate and efficiency variances for the period and classify each as favorable, unfavorable or no variance