Following is a partially completed performance report for a recent week for direct labor in the binding department of a book publisher: Calculate the direct labor efficiency variance in terms of hours. Calculate the direct labor rate variance. Original Budget Flexed Budget Actual Budget Variance Direct labor $ 1,800 $ 1,888 The original budget is based on the expectation that 3,000 books would be bound; the standard is 20 books per hour at a pay rate of $12 per hour. During the week, 2,860 books were actually bound. Employees worked 160 hours at an actual total cost of $1,888. Required:

Calculate the direct labor efficiency variance in terms of hours

Calculate the direct labor rate variance