Calculate the company$’$s direct labor efficiency variance for the month of May. Show your calculations

$2-$Without any calculations, explain how would the company further analyze the labor efficiency variance.

 

Maxwell Mechanical Inc. specializes in servicing central air-conditioning units. Maxwell Mechanical employs licensed HVAC technicians and apprentices. Each service call requires a combination of both types of labor. Maxwell's standard time and cost for each service call are as follows. Time 1.0 hour 3.0 hours Wage $30/hour $14/hour HVAC technician Apprentice During the month of May, Maxwell serviced 1,500 air-conditioning units. HVAC technicians worked a total of 1,900 hours with a total labor cost of $60,800. Apprentices worked a total of 4,000 hours with a total labor cost of $52,000. The service calls require a certain amount of direct materials. For the month of May, Maxwell experienced a favorable direct materials price variance of $5,000 and an unfavorable direct materials usage variance of $8,000.