Direct Labor Variances Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a standard hourly rate of $14.00 per hour. If 5,400 units used 16,800 hours at an hourly rate of $13.44 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct labor rate variance Favorable b. Direct labor time variance Unfavorable c. Direct labor cost variance Favorable Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). The labor cost variance is the difference between the actual and standard labor cost. Factory Overhead Controllable Variance Bellingham Company produced 2,600 units of product that required 4.5 standard direct labor hours per unit. The standard variable overhead cost per unit is $5.50 per direct labor hour. The actual variable factory overhead was $62,550. Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Favorable Feedback Check My Work The variable factory overhead controllable variance is the difference between the actual variable overhead costs and the budgeted variable overhead for actual production. Factory Overhead Volume Variance Bellingham Company produced 2,300 units of product that required 5 standard direct labor hours per unit. The standard fixed overhead cost per unit is $2.50 per direct labor hour at 12,200 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Unfavorable Feedback Check My Work The fixed factory overhead volume variance is the difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual units produced