Direct Labor Variances

Ada Clothes Company produced $19,000$ units during April. The Cutting Department used $3,600$ direct labor hours at an actual rate of $$12\mathrm{.}00$ per hour. The Sewing Department used $6,000$ direct labor hours at an actual rate of $$11\mathrm{.}70$ per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $$11\mathrm{.}90.$ The standard labor time for the Cutting and Sewing departments is $0\mathrm{.}2$ hour and $0\mathrm{.}3$ hour per unit, respectively.

a$.$ Determine the direct labor rate, direct labor time, and total direct labor cost variance for the $(1)$ Cutting Department and $(2)$ Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Line Item Description Cutting Department Sewing Department

Direct Labor Rate Variance $fill in the blank $1$

$0$

$fill in the blank $3$

Direct Labor Time Variance $fill in the blank $5$

$0$

$fill in the blank $7$

Total Direct Labor Cost Variance $fill in the blank $9$

$0$

$fill in the blank $11$

b$.$ The two departments have opposite results. The Cutting Department has a$($n$)$ fill in the blank $1$ of $6$

rate variance and a$($n$)$ fill in the blank $2$ of $6$

time variance, resulting in a total fill in the blank $3$ of $6$

cost variance. In contrast, the Sewing Department has a$($n$)$ fill in the blank $4$ of $6$

rate variance but has a$($n$)$ fill in the blank $5$ of $6$

time variance, resulting in a total fill in the blank $6$ of $6$

cost variance.