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To compute the **direct labor rate variance** and **direct labor efficiency variance**, let's break the calculations down step by step based on the given data:

### Definitions:
1. **Direct Labor Rate Variance (DLRV):**
   \[
   \text{DLRV} = (\text{AR} - \text{SR}) \times \text{AH}
   \]
   - **AR (Actual Rate):** $14.10
   - **SR (Standard Rate):** $14.00
   - **AH (Actual Hours):** 29,700 hours

2. **Direct Labor Efficiency Variance (DLEV):**
   \[
   \text{DLEV} = (\text{AH} - \text{SH}) \times \text{SR}
   \]
   - **AH (Actual Hours):** 29,700 hours
   - **SH (Standard Hours):** 24,900 hours
   - **SR (Standard Rate):** $14.00

### Step 1: Calculate Direct Labor Rate Variance
\[
\text{DLRV} = (14.10 - 14.00) \times 29,700
\]
\[
\text{DLRV} = 0.10 \times 29,700 = 2,970 \, \text{(Unfavorable)}
\]

### Step 2: Calculate Direct Labor Efficiency Variance
\[
\text{DLEV} = (29,700 - 24,900) \times 14.00
\]
\[
\text{DLEV} = 4,800 \times 14.00 = 67,200 \, \text{(Unfavorable)}
\]

### Results:
1. **Direct Labor Rate Variance:** $2,970 (Unfavorable)
2. **Direct Labor Efficiency Variance:** $67,200 (Unfavorable)
3. **Total Direct Labor Variance:** $2,970 + $67,200 = $70,170 (Unfavorable)

Let me know if you have further questions or if you'd like a detailed explanation of any of the calculations!

### Expanding Questions:
1. How do you compute the direct materials price and quantity variances?
2. Why is it important to analyze labor efficiency variances in manufacturing?
3. Can a company have favorable rate variance but unfavorable efficiency variance? Provide examples.
4. How does variance analysis help in budgeting and controlling costs?
5. What strategies can a company implement to address unfavorable variances?

### Tip:
Always cross-check actual and standard rates or hours carefully when calculating variances, as small differences can significantly impact the results.

Compute the direct labor rate variance and the direct labor efficiency variance, given Lucia Company's data.

Understand how to compute the direct labor rate and efficiency variances using Lucia Company's data. Detailed step-by-step calculations for labor cost analysis include $2,970 Unfavorable Rate Variance and $67,200 Unfavorable Efficiency Variance.

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