Lewis Companys standard labor cost of producing one unit of Product DD is 3.7 hours at the rate of $12.9 per hour. During August, 40,300 hours of labor are incurred at a cost of $13.10 per hour to produce 10,700 units of Product DD. (a) Compute the total labor variance.

Total labor variance

$

Unfavorable (correct)

(b) Compute the labor price and quantity variances.

Labor price variance		$		Unfavorable (correct)
Labor quantity variance		$		Unfavorable (correct)

(c) Compute the labor price and quantity variances, assuming the standard is 3.9 hours of direct labor at $13.30 per hour.

Labor price variance		$		Favorable (correct)
Labor quantity variance		$		Favorable (correct)