Fanning's Doll Company produces handmade dolls. The standard amount of time spent on each doll is $1\mathrm{.}50$ hours. The standard cost

of labor is $$7\mathrm{.}62$ per hour. The company planned to make $7,100$ dolls during the year but actually used $11,150$ hours of labor to make

$8,500$ dolls. The payroll amounted to $$90,315.$

Required

a$.$ Should labor variances be based on the planned volume of $7,100$ dolls or the actual volume of $8,500$ dolls?

b$.$ Prepare a table that shows the standard labor price, the actual labor price, the standard labor hours, and the actual labor hours.

c$.$ Compute the labor price variance and indicate whether it is favorable $($F$)$ or unfavorable $($U$).$

d$.$ Compute the labor usage variance and indicate whether it is favorable $($F$)$ or unfavorable $($U$).$

Complete this question by entering your answers in the tabs below.

Req $C$ and $D$

Should labor variances be based on the planned volume of $7,100$ dolls or the actual volume of $8,500$ dolls?

Labor variances should be based on the