Response to the following questions:
1. a. What are the two variances between the actual cost and the standard cost for direct labor?
b. Who generally has control over the direct labor cost?
2. A new assistant controller recently was heard to remark: "All the assembly workers in this plant are covered by union contracts, so there should be no labor variances." Was the controller's remark correct? Discuss.
If possible, please give examples to better understand your answers.