Managerial Accounting

Anne's Patisserie ("Anne's") creates fresh handmade cakes daily. The budgeted information for 600 cakes for the month of July are as follows. Direct labour hours is 150 hours and direct labour hourly rate is $17 per hour. Anne's produced a total of 700 cakes in the month of July 2019. Calculate the direct labour rate variance and state whether the variance is favourable or unfavorable. Analyse the total direct labour variance and explain if Anne's is doing well in controlling its labour cost. Please provide clear working and explanation.