Labor Rate and Efficiency Variances

Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of $0\mathrm{.}025$ hour. During the month of April, $1,000,000$ bottles were produced using $24,000$ labor hours @ $$16\mathrm{.}00.$ The standard wage rate is $$14\mathrm{.}00$ per hour.

Required:

Calculate the labor rate and efficiency variances using the columnar and formula approaches. Enter amounts as positive numbers and select Favorable or Unfavorable.

Labor rate variance

Labor efficiency variance