Direct Labor Variances Assume that Nortel manufactures specialty electronic circuitry through a unique photoelectronic process. One of the primary products, Model ZX40, has a standard labor time of 0.5 hour and a standard labor rate of $14.50 per hour. During February, the following activities pertaining to direct labor for ZX40 were recorded:

Direct labor hours used	2,200
Direct labor cost	$36,000
Units of ZX40 manufactured	4,600

(a) Determine the labor rate variance. $Answer

AnswerFU (b) Determine the labor efficiency variance. $Answer AnswerFU (c) Determine the total flexible budget labor cost variance. $Answer AnswerFU

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