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Sunshine Company has the following direct labor standard for its Sunny Sunglasses. 1.2 standard hours per sunglass at $10.00 per hour Last month, employees actually

Sunshine Company has the following direct labor standard for its Sunny Sunglasses. 1.2 standard hours per sunglass at $10.00 per hour Last month, employees actually worked 2,500 hours at a total labor cost of $26,250 to make 2,000 sunglasses.

What is the labor rate variance?

What is the labor efficiency variance?

Identify the possible reasons for the variances?

Who will be held responsible for the variances found?

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