Super Rat Machine Works produces sprockets for the Tree Bicycle Company.

At the beginning of the year, they had the following standard costs for one batch of sprockets:

Direct labour (4 hours @ $12.00 per hour) $ 48.00

The actual results for the year are:

Batches produced 68,000Direct labour hours 290,000Direct labour cost per hour $ 11.00

Required:

Calculate the labour variances and use your solution to answer the following questions.

NOTE: Please enter all variances as positive numbers.

The amount of the direct labour rate variance, also called the direct labour price variance, is $____________.

Indicate if the direct labour rate variance is favourable (enter the letter F) or unfavourable (enter the letters UF).

The amount of the direct labour efficiency variance, also called the direct labour usage variance, is $____________.

Indicate if the direct labour efficiency variance is favourable (enter the letter F) or unfavourable (enter the letters UF).

The total labour variance, also called the direct labour flexible budget variance, is $___________.

Indicate if the total labour variance is favourable (enter the letter F) or unfavourable (enter the letters UF).