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How do I calculate the labor rate variance and the labor efficiency variance? Also, How do I indicate whether the variances are favorable or unfavorable?
How do I calculate the labor rate variance and the labor efficiency variance? Also, How do I indicate whether the variances are favorable or unfavorable?
At Tarjee, the standard quantity of labor is 24 hours per refrigeration unit. The standard wage rate is $34. In July, the company produced 79 refrigeration units and incurred 2,120 labor hours at a cost of $74,200.
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