Question - The records of Simon Company show the following for February:
Standard labor-hours allowed per unit of output 1.50
Standard variable overhead rate per standard direct labor-hour $ 38
Good units produced 60,000
Actual direct labor-hours worked 92,000
Actual total direct labor $ 1,979,000
Direct labor efficiency variance $ 40,300 U
Actual variable overhead $ 2,564,000
Required: Compute the direct labor and variable overhead price and efficiency variances.