Question 22 If the labor efficiency variance is unfavorable, then. actual hours exceeded standard hours allowed for actual output the actual rate exceeded the standard rate. the standard rate exceeded the actual tate standard hours afowed for the actual output exceeded actual hours Question 23 The Litton Company has established standards as follows: Direct material: 3 pounds per unit @ SA per pound = 512 per unit Direct labor: 2 hours per unit @ $8 per hour 516 per unit Variable manufacturing overhead: 2 hours per unit @ $5 per how = 510 per uit Actual production figures for the past year are given below. The company records the who are purchased. 600 wib 2.000 pounds 511.40 99,240 55,728 Units produced Direct material used Direct material paghased (3,000 pounds) Direct labor cost (1,100 hours) Variable manufacturing overhead cont incurred The labor rate variance is $440 F $480 U $440 V $480 F D Question 24