The records of Simon Company show the following for February:
Standard labor hours allowed per unit of output 1.5
Standard variable overhead rate per standard direct labor hour $ 30
Good units produced 60,000
Actual direct labor hours worked 92,000
Actual total direct labor $ 1,975,000
Direct labor efficiency variance $ 40,000 U
Actual variable overhead $ 2,560,000
Required:
Compute the direct labor and variable overhead price and efficiency variances. (Input all amounts as positive values. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Do not round your intermediate calculations. Omit the “$” sign in your response.)
Price Variance Efficiency Variance
Direct labor $ $
Variable overhead $ $