Jake's Cheese Company produces gourmet cheese for resale at local grocery stores.Jake's expected to use 0.50 direct labor hours to produce one unit (batch)of product at a cost of $10 per hour.Actual results are in for last year,which indicates 45,000 batches of cheese were sold.The company's direct labor workforce worked 27,500 hours at $9 per hour.
(1)Calculate the labor rate variance.
(2)Calculate the labor efficiency variance.
(3)Suggest several possible reasons for the labor rate and efficiency variances.

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The Answer of Jake's Cheese Company produces gourmet cheese for resale at local grocery stores.Jake's expected to use 0.50 direct labor hours to produce one unit (batch)of product at a cost of $10 per hour.Actual results are in for last year,which indicates 45,000 batches of cheese were sold.The company's direct labor workforce worked 27,500 hours at $9 per hour.
(1)Calculate the labor rate variance.
(2)Calculate the labor efficiency variance.
(3)Suggest several possible reasons for the labor rate and efficiency variances.

Jake's Cheese Company Produces Gourmet Cheese for Resale at Local