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Greetings! I could use some assistance with Direct Labor Rate and efficiency variances: Direct labor variance calculation and explanation ; Gunter Family Instruments makes cellos.

Greetings! I could use some assistance with Direct Labor Rate and efficiency variances:

Direct labor variance calculation and explanation; Gunter Family Instruments makes cellos. During the past year, the company made 3,500 cellos even though the budget planned for 3,600. The company paid its workers an average of $20 per hour, which was $0.50 higher than the standard labor rate. The production manager budgets 6 direct labor hours per cello. During the year, a total of 20,840 direct labor hours were worked.

A: Calculate the direct labor rate and efficiency variances.

B: What might have caused the variances you calculated?

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