. The company has a standard cost system to help control costs and has established the following labor standards for completing quilt tops. (10 points) Standard labor-hours per unit of output: 5.4 hours Standard labor rate: $10.20 per hour The following data pertain to quilt top operations for the last month. Actual hours worked: 1,000 hours Actual labor cost: $10,600 Actual output: 200 units Compute the following variances Direct labor rate and efficiency variances. Prepare a brief explanation of the possible causes of each variance.

17. Charity Quilt Company produces and sells custom quilts. The company has a standard cost system to help control costs and has established the following labor standards for completing quilt tops. (10 points) Standard labor-hours per unit of output: 5.4 hours Standard labor rate: $10.20 per hour The following data pertain to quilt top operations for the last month. Actual hours worked: 1,000 hours Actual labor cost: $10,600 Actual output: 200 units Compute the following variances Direct labor rate and efficiency variances. Prepare a brief explanation of the possible causes of each variance.