Labor Rate and Efficiency Variances

Frasco Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.025 hours. During the month of April, 750,000 bottles were produced using 21,000 labor hours @ $10.00. The standard wage rate is $9.50 per hour.

Required:

Calculate the labor rate and efficiency variances using the columnar and formula approaches.

Labor rate variance	$_________ Select Favorable Unfavorable
Labor efficiency variance	$_________ Select Favorable Unfavorable