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Microsoft Corporation sets the standard labor cost for producing one unit of software at 20 hours at $30 per hour. During the period, 1,000 units

Microsoft Corporation sets the standard labor cost for producing one unit of software at 20 hours at $30 per hour. During the period, 1,000 units were produced, and 22,500 hours were worked at an average rate of $32 per hour. Calculate the labor rate variance and efficiency variance. Analyze the implications of these variances on Microsoft's performance and identify potential causes for the deviations from standard labor costs.

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