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Lewis Company’s standard labor cost of producing one unit of Product DD is 3.40 hours at the rate of $14.00 per hour. During August, 43,100 hours of labor are incurred at a cost of $14.13 per hour to produce 12,500 units of Product DD.
(a) Compute the total labor variance.
(b) Compute the labor price and quantity variances.
Labor price variance.
Labor quantity variance.
(c( Repeat (b), assuming the standard is 3.6 hours of direct labor at 14.26 per hour.
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