Lewis Companys standard labor cost of producing one unit of Product DD is 4.00 hours at the rate of $12.00 per hour. During August, 40,600 hours of labor are incurred at a cost of $12.15 per hour to produce 10,000 units of Product DD. (a) Compute the total labor variance.

Total labor variance

$

UnfavorableNeither favorable nor unfavorableFavorable

(b) Compute the labor price and quantity variances.

Labor price variance		$		UnfavorableFavorableNeither favorable nor unfavorable
Labor quantity variance		$		UnfavorableFavorableNeither favorable nor unfavorable

(c) Compute the labor price and quantity variances, assuming the standard is 4.10 hours of direct labor at $12.25 per hour.

Labor price variance		$		Neither favorable nor unfavorableFavorableUnfavorable
Labor quantity variance		$		FavorableUnfavorableNeither favorable nor unfavorable