Back to the bookshelf example: Direct Labor Variances Standard to make a one bookshelf = 0.8 hours at $12.50 per hour End of month - the company made 10,000 bookshelves, used 7,500 labor hours, and paid an average of $13.00 per hour. Total direct labor spending was $97,500. Number of Bookshelves DL Total Variance Standard Hours Allowed per unit Total Standard Hours Allowed Standard Cost per hour Total Standard Cost Allowed Actual Cost for Labor Standard Cost Allowed above Total Labor Variance Is the variance Favorable or Unfavorable? Answer: Always do this first