• Perform variance analysis for Pfizer Inc.'s direct labor for June 2023.
• Use the following data:
  • Standard Cost per Hour: $18
  • Actual Cost per Hour: $19
  • Standard Hours Allowed for Actual Production: 1,500 hours
  • Actual Hours Worked: 1,600 hours

Question:

Using the given data, calculate the direct labor rate variance and the direct labor efficiency variance for Pfizer Inc. for June 2023. Show your calculations and explain the significance of these variances.