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Exercise 8-14A (Algo) Calculating and explaining labor price and usage varlances LO 8-6 Russell and...

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Exercise 8-14A (Algo) Calculating and explaining labor price and usage varlances LO 8-6 Russell and Sons, a CPA firm, established the following standard labor cost data for completing what the firm referred to as a Class 2 tax return Russell expected each Class 2 return to require 4.6 hours of labor at a cost of $53 per hour. The firm actually completed 600 Class 2 returns. Actual labor hours averaged 4.3 hours per return and actual labor cost amounted to $61 per hour. Required a. Determine the total labor variance and indicate whether it is favorable (F) or unfavorable (U). b. Determine the labor price vartance and indicate whether it is favorable (f) or unfavorable (U). c. Determine the labor usage vartance and indicate whether it is favorable (f) or unfavorable (U). Note: For all requireffents, do not round intermediate cakculations and select " None" if there is no effect (l.e, zero varance)

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