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{.}69$ per hour. The company planned to make $7,700$ dolls during the year but actually used $12,150$ hours of labor to make

$8,600$ dolls. The payroll amounted to $$98,537.$

Required

a$.$ Should labor variances be based on the planned volume of $7,700$ dolls or the actual volume of $8,600$ 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.

Req C and D

Compute the labor price and labor usage variances and indicate whether they are favorable $($F$)$ or unfavorable $($U$).$

Note: Select "None" if there is no effect $($i$.$e$.,$ zero variance$).$ Round your final answers to nearest whole dollar.