Question 13 Pagley Companys standard labour cost of producing one unit of product DD is 4.20 hours at the rate of $13.60 per hour. During August, 52,460 hours of labour are incurred at a cost of $13.95 per hour to produce 12,200 units of product DD.

Calculate the total labour variance.

Total labour variance

$

UnfavourableFavourableNeither favourable nor unfavourable

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Calculate the labour price and quantity variances.

Labour price variance:		$		FavourableUnfavourableNeither favourable nor unfavourable
Labour quantity variance:		$		UnfavourableNeither favourable nor unfavourableFavourable

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Calculate the labour price and quantity variances, assuming the standard is 4.40 hours of direct labour at $14.10 per hour.

Labour price variance:		$		UnfavourableFavourableNeither favourable nor unfavourable
Labour quantity variance:		$		Neither favourable nor unfavourableFavourableUnfavourable