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Direct Labor Variances The following data relate to labor cost for production of 3,700 cellular telephones Actual: 2,480 hrs at $13.90 Standard: 2,400 hrs. at
Direct Labor Variances The following data relate to labor cost for production of 3,700 cellular telephones Actual: 2,480 hrs at $13.90 Standard: 2,400 hrs. at $14.20 a. Determine the direct laborate variance, direct labor time variance, and total direct labor cost variance Enter a favorable variance as a negative number using a minus sigo and on unfavorable vanance as a positive number Rate variance Favorable Time variance Unfavorable Total direct labor cost varsance Favorable b. The employees may have been less experienced workers who were paid less than more expenenced workers or poorly trained, thereby resulting in a lower labor rate than planned. The lower level of experience or training may have resulted in less efficient performance. Thus, the actual time required was more than standard
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