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Direct labor variances Ada Clothes Company produced 14,000 units during April. The Cutting Department used 2,700 direct labor hours at an actual rate of
Direct labor variances Ada Clothes Company produced 14,000 units during April. The Cutting Department used 2,700 direct labor hours at an actual rate of $13.60 per hour. The Sewing Department used 4,500 direct labor hours at an actual rate of $13.30 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 $13.50. The standard labor time for the Cutting and Sewing departments is 0.2 hour and 0.3 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. Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance Cutting Department Sewing Department b. The two departments have opposite results. The Cutting Department has a(n) Department has a(n) rate variance and a(n) time variance, resulting in a total cost variance. In contrast, the Sewing rate variance but has a(n) time variance, resulting in a total cost variance.
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