The following computations of March labor variances for Sams Supply Company are incomplete. The missing items are labeled (a) through (d).

Labor rate variance = 4,800 hours * [(a) $8.50] = $350 favorable

Labor efficiency variance = (b) * [(c) 5,000 hours] = $(d)

1. Is (a) the standard rate or the actual rate?

2. Is 8.50 the standard rate or actual rate??

Is a 8.43 or 8.57?

I have seen:

4800(a - 8.50) = 350

4800a - 40800 = 350

4800a = 41150

4800(a - 8.50) = 350

4800a - 40800 = 350

4800a = 41150

a = 8.5729

and I have seen

Labor rate variance = 4,800 hours x [(a) $8.50] = $350 - $350 / 4,800 = [(a) $8.50] (a) = $8.43

which is correct, and why??

Thank you for your time.