Calculate labor rate and efficiency variances for august

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Reference no: EM13951629

Northwest Medical Testing draws blood samples from approximately 2,500 clients each month. The standard time for a technician to draw and prepare a blood sample for testing is 10 minutes. The standard wage rate for technicians is $20 per hour. During August, Northwest hired a temporary employee at $30 per hour to fill in for a technician who quit unexpectedly. During the month, technicians processed 2,400 samples and were paid $11,050 for 425 hours of work related to drawing and preparing blood samples.

Required:

Calculate labor rate and efficiency variances for August, and comment on whether labor costs for technicians appear to be in control or out of control. 

Reference no: EM13951629

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