The following information is available for Lightning Corporation, which produces fancy-dancy screwdrivers.

The following information pertains to labor.

...Actual volume of screwdrivers produced = 105,000

...Actual labor time = 9,450 hours

...Actual pay per hour = $17 per hour

...Budgeted volume of screwdrivers produced = 112,000

...Budgeted labor time = 12,320

...Budgeted total spending = $197,120

Question

1. Use the information above to compute the labor spending variance.

2. Use the information from the Lightning problem (above) to calculate the labor efficiency variance.

3. Use the information from the Lightning problem (above) to calculate the labor activity variance.

4. Related to your calculations for the Lightning problem, which of the following statements are true? (Check all that apply.)

-The labor spending variance is favorable.

-The labor efficiency variance is favorable.

-The labor activity variance is favorable.