B c C D E F G Problem 5: DL Variances 2 The following data relate to labor cost for production of 3,500 Ph meters: Hours Rate Actual: 2,850 hrs. at $15.70 2850 15.70 Standard: 2,700 hrs. at $16.20 2700 16.20 3 Required: A. Determine the following Direct Labor variances 0 1 i) Direct Labor Rate Variance: 2 (AR-SR) AH for Actual Production 3 4 il) Direct Labor Time Variance: - 5 (AH-SH) for Actual Production x SR 6 7 iii) Total Direct Labor Cost Variance: 8 DLRV + DLTV 9 o B. Briefly explain the reasons for unfavorbale DL cost variance. 1 2 3 Answer: 4 5 6 7 8 9