The following labour standards have been established for a particular product:

Standard labour hours per unitof output- 8.3 hours

Standard labour rate- $12.10 per hour

The following data pertain to operations concerning the product for the last month:

Actual hoursworked - 6,100 hours

Actual total labour cost- $71,370

Actual output- 900 units

1. What were the labourvariances for the month? Clearly indicate whether they were Favourable (F), or, Unfavourable (U)

[8 marks]

Input:DLOutput:900units

STD:8.3 Hrs @ $12.10

AH xARAH xSRSH xSR

1. Overhead is applied on the basis of direct labour hours:

Standard labour hours per unit of output- 8.3 hours

Standard variable overhead costs per hour- $2.10 per hour

Required: Determine the overhead variances

Input:MOH -VCOutput:900units

STD:8.3Hrs@ $2.10

AH xARAH xSRSH xSR

[7 marks]