Waterway Family Instruments makes cellos. During the past year,the company made 6,380 cellos even though the budget planned foronly 5,580. The company paid its workers an average of $15 perhour, which was $1 higher than the standard labor rate. Theproduction manager budgets four direct labor hours per cello.During the year, a total of 24,790 direct labor hours wereworked.
(a) Calculate the direct labor rate and efficiencyvariances. (If variance is zero, select "NotApplicable" and enter 0 for the amounts.)
| Direct labor rate variance | | $Enter a dollar amount | Select an option UnfavorableNot ApplicableFavorable |
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| Direct labor efficiency variance | | $Enter a dollar amount | Select an option FavorableUnfavorableNot Applicable |
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