$1\mathrm{.}2$ Direct Labor Variances

LU$08$ Homework assignment take frame

The following data relate to labor cost for production of $3,600$ cellular telephones:

Actual: $,2,450hrs.$ at $$14\mathrm{.}50$

Standard: $,2,410hrs.$ at $$14\mathrm{.}80$

a$.$ Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a

minus sign and an unfavorable variance as a positive number.

b$.$ The employees may have been less$-$experienced workers who were paid less than more$-$experienced workers or poorly trained, thereby resulting in a

$$ labor rate than planned. The lower level of experience or training may have resulted in $,$ efficient performance. Thus, the actual time