Rooney's Doll Company produces handmade dolls. The standard amount of time spent on each doll is $1\mathrm{.}50$ hours. The

standard cost of labor is $$7\mathrm{.}74$ per hour. The company planned to make $8,800$ dolls during the year but actually used

$13,800$ hours of labor to make $9,500$ dolls. The payroll amounted to $$110,676.$

Required

a$.$ Should labor variances be based on the planned volume of $8,800$ dolls or the actual volume of $9,500$ dolls?

b$.$ Prepare a table that shows the standard labor price, the actual labor price, the standard labor hours, and the actual labor

hours.

c$.$ Compute the labor price variance and indicate whether it is favorable $($F$)$ or unfavorable $($U$).$

d$.$ Compute the labor usage variance and indicate whether it is favorable $($F$)$ or unfavorable $($U$).$

Complete this question by entering your answers in the tabs below.

Should labor variances be based on the planned volume of $8,800$ dolls or the actual volume of $9,500$ dolls?

Labor variances should be based on the