Lewis Companys standard labor cost of producing one unit of Product DD is3.9hours at the rate of $13.0per hour. During August,42,000hours of labor are incurred at a cost of $13.20per hour to produce10,600units of Product DD.

Compute the labor price and quantity variances, assuming the standard is4.2hours of direct labor at $13.40per hour.

Labor price variance ________________ Favorable, Unfavorable, Neither favorable or unfavorable

Labor quantity variance ________________ Favorable, Unfavorable, Neither favorable or unfavorable