Lewis Company s standard labor cost of producing one unit of Product DD is 3.20 hours at the rate of $11.00 per hour. During August, 42,800 hours of labor are incurred at a cost of $11.16 per hour to produce 13,200 units of Product DD.

(a)Compute the total labor variance.

Total labor variance $ FavorableUnfavorableNeither favorable nor unfavorable

(b)Compute the labor price and quantity variances.

Labor price variance $ Neither favorable nor unfavorableUnfavorableFavorable

Labor quantity variance $ FavorableUnfavorableNeither favorable nor unfavorable

(c)Compute the labor price and quantity variances, assuming the standard is 3.52 hours of direct labor at $11.36 per hour.

Labor price variance $ UnfavorableFavorableNeither favorable nor unfavorable

Labor quantity variance $ Neither favorable nor unfavorableUnfavorableFavorable