Lewis Company's standard labor cost of producing one unit of Product DD is3.80hours at the rate of $10.30per hour. During August,40,200hours of labor are incurred at a cost of $10.50per hour to produce10,500units of Product DD.

(a)

Compute the total labor variance.

Total labor variance$

Unfavorable

Neither favorable nor unfavorable

Favorable

(b)

Compute the labor price and quantity variances.

Labor price variance$

Favorable

Unfavorable

Neither favorable nor unfavorable

Labor quantity variance$

Favorable

Unfavorable

Neither favorable nor unfavorable

(c)

Compute the labor price and quantity variances, assuming the standard is4.20hours of direct labor at $10.70per hour.

Labor price variance$

Favorable

Unfavorable

Neither favorable nor unfavorable

Labor quantity variance$

Unfavorable

Neither favorable nor unfavorable

Favorable

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