Click to watch the Tell Me More Learning Objective 2 video and then answer the questions below. variances. 1. The differences between actual and standard costs are called a. cost b. profit c. quantity d. volume 2. A favorable cost variance results when a. actual cost is greater than standard cost at actual volumes. b. actual cost is less than standard cost at actual volumes. c. actual cost is equal to standard cost at actual volumes. d. actual cost is greater than standard cost at budgeted volumes. Direct Labor Variances The following data relate to labor cost for production of 4,900 cellular telephones: 3,330 hrs. at $12.5 Actual: Standard: 3,280 hrs. at $12.8 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 b. The employees may have been less-experienced or poorly trained, thereby resulting in a labor rate than planned. The lower level of experience or training may have resulted in efficient performance. Thus, the actual time required was than standard