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Labor and Overhead Variances
At the start of 2012, Textile Express Company determined its standard labor cost to be 2.5 hours per unit at $14.00 per hour.The budget for variable overhead was $8 per unit,and budgeted fixed overhead was $15,000 for the year.Expected annual production was 5,000 units.During 2012, the actual cost of labor was$14.25 per hour. Textile Express produced 4,800 units requiring 11,700 direct labor hours. Actual overhead for the year was $48,000.
Required
Evaluate labor rate and efficiency variances and the controllable overhead variance and the overhead volume variance.
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