Labor Rate and Efficiency Variances

Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.025 hour. During the month of April, 1,000,000 bottles were produced using 24,000 labor hours @ $17.00. The standard wage rate is $15.00 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	$