Direct Labor Variances Greason Clothes Company produced 17.000 units during June of the current year. The Cutting Department used 3,200 direct labor hours at an actual rate of $14.4 per hour. The Sewing Department used 5.300 direct labor hours at an actual rate of $14.1 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 $14.3. 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. Cutting Department Sewing Departi Direct Labor Rate Variance Unfavorable Favor Direct Labor Time Variance Favorable Unfave Total Direct Labor Cost Variance Favorable Unfavc ). The two departments have opposite results. The Cutting Department has an unfavorable rate and a[n) favorable time variance, resulting in a total favorable cost variance. In contrast, the Sewing Department has a(n) favorable rate variance but has a(n) unfavorable time variance, resulting in a total unfavorable cost variance. 7 Chea My Work a 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