Exercise 24-5 Computation and interpretation of labor variances C2P2 After evaluating Null Company's manufacturing process, management decides to establish standards of 3 hours of direct labor per unit of product and $15 per hour for the labor rate. During October, the com- pany uses 16,250 hours of direct labor at a $247,000 total cost to produce 5,600 units of product. In November, the company uses 22,000 hours of direct labor at a $335,500 total cost to produce 6,000 units of product. (1) Compute the rate variance, the efficiency variance, and the total direct labor cost vari- ance for each of these two months. (2) Interpret the October direct labor variances. October rate variance, Check $3,250 U