Answer and Explanation:
The computation is shown below:
a. The labor rate variance is
= (standard rate - actual rate) ├Ч actual labor hours
= ($20 - $19.50) ├Ч 64,000
= $32,000 favorable
b. The labor efficiency variance is
= (standard hours - actual hours) ├Ч standard rate
= (62,500 - 64,000) ├Ч $20
= -$30,000 unfavorable
c. the total flexible budget variance is
= standard cost - actual cost
= ($1,250,000 - $1,248,000)
= $2,000 favorable
