Delmar Inc. uses a standard cost system. Labor standards are 2.1 hours per widget at $8.30 per hour. During August, Delmar Inc. paid its workers $140,660 for 16,700 hours. Delmar Inc. produced 8,500 widgets during August.

Delmar Inc. uses a standard cost system. Labor standards are 2.1 hours per widget at $8.30 per hour. During August, Delmar Inc. paid its workers $140,660 for 16,700 hours. Delmar Inc. produced 8,500 widgets during August. a. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Rate Variance b. Calculate the direct labor efficiency variance. (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Efficiency Variance