After evaluating zero companys manufacturing process

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After evaluating Zero Company's manufacturing process, management decides to establish standards of 3.4 hours of direct labor per unit of product and $13 per hour for the labor rate. During October, the company uses 16,600 hours of direct labor at a $221,610 total cost to produce 5,200 units of product. In November, the company uses 26,000 hours of direct labor at a $399,100 total cost to produce 6,500 units of product.

Required: Compute the rate variance, the efficiency variance, and the total direct labor cost variance for each of these two months. (Oct, and Nov.) State whether favorable, unfavorable or zero variance.

Reference no: EM13599427

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