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Direct Labor Variances Greeson Clothes Company produced 15,000 units during June of the current year. The Cutting Department used 2,900 direct labor hours at
Direct Labor Variances Greeson Clothes Company produced 15,000 units during June of the current year. The Cutting Department used 2,900 direct labor hours at an actual rate of $13.8 per hour. The Sewing Department used 4,800 direct labor hours at an actual rate of $13.5 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 $13.7. 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 290 Unfavorable Favorable Favorable b. The two departments have opposite results. The Cutting Department has a(n) unfavorable favorable cost variance. In contrast, the Sewing Department has a(n) favorable. total unfavorable cost variance. Sewing Department. -960 Favorable Unfavorable Unfavorable time variance, resulting in a total rate and a(n) favorable rate variance but has a(n) unfavorable time variance, resulting in a
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