The standard direct labor cost per reservation for Harrys Hotel is $2 (= $12 per labor-hour 6 reservations per hour). Actual direct labor costs during the period totaled $52,740. Also during the period, 2,000 labor-hours were worked, and 7,500 reservations were made.

Required:

Compute the direct labor rate variance(also known as the price variance) and efficiency variance for the period. (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)

Direct labor price variance Efficiency variance