D$$rect Labor Variances for a Service Company

May $6,$ the truck prepared $60$ of its most popular item, the Breakfast Enchilada. The following data are available for that day:

Quantity of direct labor used

$(2$ employees, working $8-$hour shifts$)$

Actual rate for direct labor

Standard direct labor per meal

Standard rate for direct labor

$16$ hrs$.$

$$14\mathrm{.}50$ per hr$.$

$0\mathrm{.}2hr.$

$$15\mathrm{.}10$ per hr$.$

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

number. Round your answers to two decimal places.

Direct Labor Rate Variance

Direct Labor Time Variance

$

Total Direct Labor Cost Variance

b$.$ Discuss what might have caused these variances.