We know the following information for Gummy Bears Inc *(Note: your class problem should be helpful here if you are stuck!)

Total Units of Product Produced: 40,000

Standard Costs Actual Costs

Direct Materials 120,000 lbs @ $3.20 per lb 115,500 lbs @ $3.25 per lb

Direct Labor 12,000 hours @ $24.40 per hr 11,700 hours @ $25.00 per hr

Factory OH 100% of Capacity: 15,000 hours

Variable Rate: $8.00 / hour $91,200 Variable Cost

Fixed Rate: $10.00 / hour $150,000 Fixed Cost

Each Unit that we produce requires 0.3 hour of direct labor

Calculate the Direct Labor Time (Efficiency) Variance AND state why it is Favorable or Unfavorable

Calculate the Total Direct Labor Variance