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The standard labor cost for producing one unit of a product is 3 hours at $12 per hour. During the period, 2,000 units were produced,
The standard labor cost for producing one unit of a product is 3 hours at $12 per hour. During the period, 2,000 units were produced, and 6,300 hours were worked at an average rate of $13 per hour. Calculate the labor rate variance and efficiency variance. Analyze the implications of these variances on the company's performance and identify potential causes for the deviations from standard labor costs.
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