The standard labor cost for a unit of product

is $20 per unit, based on 2 hours of labor per unit at an hourly

rate of $10. During August 2007, 4,000

units were manufactured at a total labor cost of $80,580,

representing 7,900 hours at a rate of 10.20 per

hour.

The labor rate variance for the month is:

The labor efficiency variance is:

A company has established labor standards

based on goals that could be attained only under perfect operating

conditions. These standards are referred

to as

"font-size:12pt;font-family:'Times New Roman';">

"all" />