The standard direct labor cost per reservation for Harry€™s Hotel is $3 (= $12 per labor hour ÷ 4 reservations per hour). Actual direct labor costs during the period totaled $45,240. Also during the period, 3,000 labor-hours were worked, and 14,000 reservations were made.
Required
Compute the direct labor price and efficiency variances for the period. (Refer to Exhibit 17.7 for the format touse.)

Transcribed Image Text:

Actual (AP x AQ) $167 x 120 days Actual Inputs at Standard Price Flexible Budget (SP x Sa) $175 x 120 days - $21,000 $175 x 113 days - $20,040 $19,776 Price variance: $20,040 $21,000 $960 F Efficiency variance: S21,000 $19,775 - $1,226 U 113 staff-days 1,130 transactions 10 tranaactiona per staff-day