Please include formulas

Problem 2: Direct Labor Variances: The standard costs and actual costs for direct labor in the manufacture of 2,500 units of product are as follows: Acronyms: AR = Actual rate per unit of Material SR = Standard rate per unit of Material AH = Actual Hour needed for Actual production SH = Standard Hour allowed for Actual production Actual $11.80 Standard $11.00 Labor rate per hour Amount of hour needed per unit of product Actual production of units 3.2 2,500 Required: Compute the followings variances and indicate if they are favorable or unfavorable: 2 A. Direct labor Rate variance (DLRV) 3 B. Direct labor Time variance (DLTV) C. Total Direct labor Cost variance (DLCV) Solution: A. DLRV = (AR-SR) XAH for Actual Production 8 B.DL TV = (AH-SH) for Actual Production x SR C.DLCV = DLRV + DLTV 5 Actual DL cost per unit of product (AC): Standard DL cost per unit of product (SC): Alternate formula to compute DLCV = (Actual cost - standard cost) per unit x # of units O