Company E makes a product that has the following direct labor standards:Standard direct labor hours = 0.2 hours per unitStandard direct labor rate = $15 per hourIn January the company’s budgeted production was 3,400 units but the actual output was 3,500 units. The company used 640 direct labor hours and the direct labor cost was $8,960.What is the labor efficiency variance? What is the labor rate variance?
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