ch 23 3

Direct Labor Variances The following data relate to labor cost for production of 5,100 cellular telephones: Actual: 3,470 hrs. at $13.00 Standard: 3,420 hrs. at $13.30 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. Rate variance Time variance $ Total direct labor cost variance labor rate than planned. The b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a lower lower level of experience or training may have resulted in less efficient performance. Thus, the actual time required was more than standard