Alvarado Company pro$$uces a product that requires $3$ standard direct labor hours per unit at a standard hourly rate of $$21\mathrm{.}00$ per hour. $15,700$ units used $66,700$ hours at an hourly rate of $$19\mathrm{.}05$ per hour.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

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a$.$ Direct labor rate variance

b$.$ Direct labor time variance

$$ X $1$

$x$ Unfavorable: $$ grad

c$.$ Direct labor cost variance $$ X

Unfavorable

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Infavorable variances can be thought of as increasing costs $($a debit$).$ Favorable variances can be thought of as decreasing costs $($a credit$).$

The labor cost variance is the difference between the actual and standard labor cost.