Lab Insight: Apply the same general steps as Lab $2-1$ to Alt Lab $2-1,$ but now calculate the direct labor variance. The template exists in Lab $2-1$ Data.xlsx to assist you in your analysis. Open Excel file Lab $2-1$ Data.xlsx$.$

Karina will make $4,000$ jackets with standard quantity of leather per jacket of $120\mathrm{.}03$ square inches of material @$$0\mathrm{.}25/$square inch. The actual quantity of leather per jacket for those $4,000$ jackets produced was $122\mathrm{.}53$ square inches of material @$0\mathrm{.}24/$square inch. The standard labor to produce each jacket is one hour for each jacket with a cost of $$16\mathrm{.}50/$hour$.$ The actual labor used to produce each jacket was $1\mathrm{.}06$ hours at $$16/$hour$.$

Required:

Using performance standards for the labor utilized in the manufacture of jackets, calculate the direct labor variances, including rate and efficiency variances.

Use conditional formatting to identify favorable and unfavorable variances.