Direct Labor Variances

Ada Clothes Company produced $22,000$ units during April. The Cutting Department used $4,200$ direct labor hours at an actual rate of $$14\mathrm{.}30$ per hour. The Sewing

Department used $7,000$ direct labor hours at an actual rate of $$14\mathrm{.}00$ 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 $$14\mathrm{.}20.$ 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.

Cutting Department

b$.$ The two departments have opposite results. The Cutting Department has a$($n$)$

rate variance and $a(n)$

time variance,

resulting in a total

cost variance. In contrast, the Sewing Department has a$($n$)$

rate variance but has $a(n)$

time variance, resulting in a total

cost variance.