Bristol Company produces blankets. The master budget shows the following standards information and indicates the company expected to produce and sell 28,000 units for the year.

Direct materials	4 yards per unit at $3 per yard
Direct labor	2 hours per unit at $10 per hour
Variable manufacturing overhead	2 direct labor hours per unit at $4 per hour

Bristol actually produced and sold 30,000 units for the year. During the year, the company purchased 130,000 yards of material for $429,000 and used 118,000 yards in production. A total of 65,000 labor hours were worked during the year at a cost of $637,000. Variable overhead costs totaled $231,000 for the year.

2. Calculate the labor rate variance and labor efficiency variance using the format shown in Figure 10.3. Clearly label each variance as favorable or unfavorable.

45. Variance Analysis for Direct Materials, Direct Labor, and Variable Overhead (continued) b. As shown below, the labor rate variance is Ac showen helowe the lahor efficiency variance is