DuRoss Company produces coats. The company uses a standard costing system and has set the following standards for materials and labor:

During the year DuRoss produced 55,000 coats. Actual fabric purchased was 460,000 yards at $5.75 per yard. There were no beginning or ending inventories of fabric. Actual direct labor was 120,000 hours at $19.25 per hour.

Required:

A. Compute the labor rate variance.

B. Compute the labor efficiency variance.

Fabric (8 yards @ $6) Direct labor (2 hours @ $18) Total prime cost $48 $36 $84