Units produced were The budget standard calls for 2 hours of labor per unit Actual hours used were 8,200 The budget standard for the labor rate is $20 per hour Actual cost was $160,000 Hs = 8,000 Ha = 8,200 Ha X Ra = actual cost = $160,000 Ra = compute Rs 20 CURL Hs Standard hours allowed for actual production Actual hours used Ha Ha X Ra = Actual cost of payroll Ra Actual rate paid Rs Standard rate by the budget Compute the following: Labor efficiency variance = (Hs-Ha) X Rs Labor rate variance = (Rs-Ra) X Ha