Chapter 22 Problem Direct Labor Variances ? Bellingham Company produces a product that requires 10 standard direct labor hours per unit at a standard hourly rate of $17.00 per hour. If 3,600 units used 35,300 hours at an hourly rate of $17.34 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance Unfav b. Direct labor time variance Favor II c. Direct labor cost varian Unfav Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit)