• Hanson Inc. has the following direct labour standards to manufacture one Zippy:

  • 1.5 standard hours per Zippy at $6.00 per direct labour hour

• Last week 1,550 direct labour hours were worked at a total labour cost of $9,610 to make 1,000 Zippies

1. What was Hanson's actual rate (AR) for labour for the week?

2. Hanson's labour rate variance (LRV) for the week was?

3. The Standard Hours (SH) of labour that should have been worked to produce 1,000 Zippies is?

4. Hanson's Labour efficiency variance (LEV) for the week was?

5. What is the labour variances summary?