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Shailene Company has set labor costs at $48 per unit of output, based on 3 hours allowed to produce each finished unit. Last month, 3,000
Shailene Company has set labor costs at $48 per unit of output, based on 3 hours allowed to produce each finished unit. Last month, 3,000 direct labor hours were used, and 1,500 units of output were manufactured at a total cost of $72,000.
Required:
a. Determine the labor rate variance.
b. Determine the labor efficiency variance.
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