During January, Novak Co. incurs 1,960 hours of direct labor at an hourly cost of $11.80 to produce 1,070 units of its finished product. Novak’s standard labor cost per unit of output is $22 (2 hours x $11.00).
Compute the total, price, and quantity labor variances for Novak Co. for January. Identify whether each variance is favorable or unfavorable.
Total Labor Variance
$enter a dollar amount
select an option Not ApplicableUnfavorableFavorable
Labor Price Variance
$enter a dollar amount
select an option Not ApplicableFavorableUnfavorable
Labor Quantity Variance