Boeing conducts a variance analysis for its aircraft assembly line. In June 2041, the following data is provided:

• Standard Labor Rate per Hour: $40
• Actual Labor Rate per Hour: $42
• Standard Hours: 50,000
• Actual Hours: 48,000

Requirements:

• Calculate the labor rate variance.
• Calculate the labor efficiency variance.
• Prepare a variance analysis report.
• Recommend actions to address unfavorable variances.