The director of cost management for Portland Instrument Corporation compares each months actual results with a monthly plan. The standard direct-labor rates for the year just ended and the standard hours allowed, given the actual output in April, are shown in the following schedule.

	Standard Direct-Labor Rate per Hour				Standard Direct-Labor Hours Allowed, Given April Output
Labor class III	$	26.00				3,000
Labor class II		23.00				3,000
Labor class I		17.00				3,000

A new union contract negotiated in March resulted in actual wage rates that differed from the standard rates. The actual direct-labor hours worked and the actual direct-labor rates per hour experienced for the month of April were as follows:

	Actual Direct-Labor Rate per Hour				Actual Direct-Labor Hours
Labor class III	$	27.80				3,100
Labor class II		24.50				3,300
Labor class I		18.20				2,750

Required:

1. 1-a. Compute the direct-labor rate variance for each labor class for the month of April.

2. 1-b. Compute the direct-labor efficiency variance for each labor class for the month of April.

3. 2. Which of the following could be considered an advantage of using a standard-costing system in which the standard direct-labor rates are not changed during the year to reflect such events as a new labor contract?