Lewis Company’s standard labor cost of producing one unit of Product DD is 3.20 hours at the rate of $12.50 per hour. During August, 42,600 hours of labor are incurred at a cost of $12.65 per hour to produce 13,200 units of Product DD. A. Compute the total labor variance.
B. Compute the labor price and quantity variances.
C. Compute the labor price and quantity variances, assuming the standard is 3.5 hours of direct labor at $12.85 per hour.

a. $10,890 Favorable

b. The labor price variance and quantity variance are $6,300 Favorable and $4,500 Favorable respectively.

c. The labor price and quantity variance is $8,520 Unfavorable and $46,260 Unfavorable respectively.

Explanation:

a. The computation of Total labor variance

= (Actual hours × Actual rate) - (Standard hours × Standard rate)

= (42,600 × $12.65) - ( 13,200 units × 3.2 × $12.5)

= $538,890 - $528,000

= $10,890F

b. The computation of the Labor price variance

= Actual hours × ( Actual rate - Standard rate)

= 42,600 × ( $12.65 - $12.5)

= 42,000 × $0.15

= $6,300 F

The computation of Labor quantity variance

= Standard rate × ( Actual hours - Standard hours)

= $12.5 per hour × ( 42,600 hours - 42,240 hours )

= $12.5 per hour × 360 hours

= $4,500 F

c. The computation of Labor price variance

= Actual hours × ( Actual rate - Standard rate)

= 42,600 × ( $12.65 - $12.85 )

= 42,600 × - $0.2

= $8,520 Unfavorable

The computation of Labor quantity variance

= Standard rate × ( Actual hours - Standard hours)

= $12.85 per unit × ( 42,600 hours - 46,200 hours)

= $12.85 per unit × - $3,600

= $46,260 Unfavorable.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.