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Waterway Companys standard labor cost per unit of output is $22.00 (2.00 hours x $11 per hour). During August, the company incurs 2,860 hours of
Waterway Companys standard labor cost per unit of output is $22.00 (2.00 hours x $11 per hour). During August, the company incurs 2,860 hours of direct labor at an hourly cost of $12.10 per hour in making 1,300 units of finished product.
1. Compute the total, price, and quantity labor variances.
a) Total labor variance
b) Labor price variance
c) Labor quantity variance
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