Direct Labor Variances Bellingham Company produces a product that requires 6 standard hours per unit at a standard hourly rate of $12.00 per hour. If 4,400 units required 26,900 hours at an hourly rate of $11.40 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) total direct labor cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. 16,140 X Unfavorable X a. Direct labor rate variance Favorable X b. Direct labor time variance -6,000 X Unfavorable X $ c. Total direct labor cost variance 10,140X Feedback Y 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 direct labor cost variance is the difference between the actual and standard labor costs