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Sage Corp. uses a standard cost system to account for the costs of its one product. Standards are 2.8 pounds of materials at $13 per
Sage Corp. uses a standard cost system to account for the costs of its one product. Standards are 2.8 pounds of materials at $13 per pound and 4.1 hours of labor at a standard wage rate of $10. During July, Sage Corp. produced 3,360 units. Materials purchased and used totaled 10,050 pounds at a total cost of $143,110. Payroll totaled $133,670 for 13,160 hours worked. a. Calculate the direct labor rate variance. (Do not round your intermediate calculations. Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Rate Variance s (2116) b. Calculate the direct labor efficiency variance (Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance).) Efficiency Variance
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