Let us examine labor for assembly and packaging variances in detail using an excel spreadsheet template. We will assume the standard labor rate per hour is $0.92. The standard labor cost per unit is provided in Exhibit 1. With this information, you can figure out standard labor hour per unit of output. (Hint: Standard labor hour per unit of output = Standard labor cost per unit / Standard labor rate per hour) The case mentions that the actual labor rate is 30% higher than the standard labor rate. In addition, total actual labor cost is provided in Exhibit 3. You can compute actual labor hour per unit of output using the following formula: Total actual labor cost = Actual labor rate per hour X Actual labor hour per unit of output X actual output of iPhones Now you have all information needed to compute labor rate (price) variance and efficiency (usage) variance