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Consider the flexible budget information for Eagle, Inc., a company that produces decorative mailboxes: 5,500 Mailboxes 6,000 Mailboxes 6,500 Mailboxes Direct Labor $270,600 $295,200 $319,800

Consider the flexible budget information for Eagle, Inc., a company that produces decorative mailboxes:

5,500 Mailboxes 6,000 Mailboxes 6,500 Mailboxes
Direct Labor $270,600 $295,200 $319,800

Each mailbox requires 6 hours of labor. Eagles budgeted production at the start of the year was 6,000 mailboxes, but actual production was 6,100 mailboxes. Actual direct labor amounted to $300,760 for the 36,500 direct laborhours used in production.

23. What was the direct labor rate variance?

A. $1,460 unfavorable

B. $1,460 favorable

C. $4,120 unfavorable

D. $4,120 favorable

E. None of the above.

24. What was the direct labor efficiency variance?

A. $4,100 unfavorable

B. $5,740 favorable

C. $15,580 favorable

D. $23,780 unfavorable

E. None of the above.

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