Assignment 2: Your company manufactures garage doors. The standard quantity of direct labor to manufacture a door is 9 hours. The standard hourly wage is $25 per hour. The number of doors produced was 18,000. The payroll records indicate that 90,000 hours were worked at a total payroll cost of $1,200,000.

Required: Calculate the following:

1) Labor Rate Variance

2) Labor Efficiency Variance

3) Net Labor Variance