Question 5

Annapolis Company completes job #601 which has a standard of 510 labor hours at a standard rate of $19.80 per hour.The job was completed in 550 hours and the average actual labor rate was $18.70 per hour.What is the labor rate variance?A negative number indicates an favorable variance and a positive number indicates an unfavorable variance.

Question 6

Annapolis Company completes job #601 which has a standard of 560 labor hours at a standard rate of $18.50 per hour.The job was completed in 540 hours and the average actual labor rate was $19.40 per hour.What is the labor efficiency (quantity) variance?A negative number indicates an favorable variance and a positive number indicates an unfavorable variance.