Question - NCN Engineering Company uses a standard cost system. The following information pertains to 2014:
Actual total direct labor costs
|
$640,000
|
Total standard labor hours allowed
|
48,000 hrs.
|
Actual labor rate
|
$16 per hour
|
Standard labor rate
|
$17 per hour
|
a) Calculate NCN's labor efficiency variance.
b) Calculate NCN's labor rate variance.