Suffera Student Limited makes axes for giants, orcs and other war-like races for them to commit various acts of mayhem. During December, the company made 6,000 axes, using 1,150 direct labour-hours. The company paid its direct labour hours at an average pay rate of $10.00 per hour. A check of the standard cost records showed that each axe should require 0.20 direct-hours at a cost of $9.50 per hour.

Required: Compute the labour rate variance and a labour efficiency variance.