The standard cost to produce Apple Fritters includes 3 hours of direct labor at $12.00 per hour.The predetermined overhead rate is $20.00 per direct labor hour.During July, the company incurred 3,500 hours of direct labor at an average rate of $12.25 per hour and $71,300 of manufacturing overhead costs.It produced 1,200 cases of Apple Fritters.

Compute the price variance, the quantity variance, the total variance for labor.Indicate whether the variance is favorable or unfavorable. Figure the solutions below and record your final answers in the space provided.

Labor Rate Variance: __________________Favorable or Unfavorable ______________

Labor Efficiency Variance: ______________Favorable or Unfavorable _____________

Total Spending Variance: _______________Favorable or Unfavorable ______________