Exercise 11-8

The standard labor cost in the production of a pair of Marx Brand athletic shoes is 0.40 hours at $14.00 per hour. During the month of June, 24,540 pairs were produced. Actual labor costs were $115,500 for 8,250 hours. Compute the labor rate and labor efficiency variances for the month of June.(Round actual wage rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125. Enter all variances as a positive number.)

Labor Rate Variance$

Unfavorable

Neither Unfavorable nor Favorable

Favorable

Labor Efficiency Variance$

Favorable

Neither Unfavorable nor Favorable

Unfavorable