The following direct labor standards have been established for product MH70:

Standard direct labor-hours 4.8 hours per unit of MH70

Standard direct labor wage rate $13.50 per hour

The following data pertain to the most recent month's operations during which 500 units of product MH70 were made:

Actual direct labor-hours worked. 2,200

Actual direct labor wages paid $30,800

Required:

1. Calculate the labor rate variance for the month. Comment on your answer. (Show the workings clearly)
2. Calculate the labor efficiency variance for the month. Comment on your answer. (Show the workings clearly)

(Please try to answer in text format, rather than in any image format)