Lewis Company’s standard labor cost of producing one unit of product DD is 4 hour at the rate of $12.00 per hour. During August, 40,600 hours of llabor are incurred at a cost of $12.`15 per hour to product 10,000 units of product DD

Instrutions

(a) Compute the total labor variance

(b) Compute the labor price and quantity variances

(c) Repeat (b), assuming the standard is 4.1 hours of direct labor at $12.25 per hour