Question 5

At Cato, the standard quantity of labor is 24 hours per refrigeration unit. The standard wage rate is $33. In July, the company produced 75 refrigeration units and incurred 2,130 labor hours at a cost of $63,900.

Calculate the labor rate variance and the labor efficiency variance. Indicate whether the variances are favorable or unfavorable.(Round intermediate calculations to 2 decimal places, e.g. 14.37 and final answers to 0 decimal places, e.g. 125. Enter all variances as a positive number.)

Calculate the Labor Rate Variance $

Labor rate variance is: choose a, b or c

a- Unfavorable

b- Favorable

c- Neither Unfavorable nor Favorable

Calculate the Labor Efficiency Variance $

a- Unfavorable

b- Neither Unfavorable nor Favorable

c- Favorable