Question
Direct Labor Variances The following data relate to labor cost for production of 20,000 cellular telephones: Actual: 8,450 hrs. at $22.50 Standard: 8,400 hrs. at
Direct Labor Variances
The following data relate to labor cost for production of 20,000 cellular telephones:
Actual: | 8,450 hrs. at $22.50 |
Standard: | 8,400 hrs. at $23.00 |
a. Determine the direct labor rate variance, direct labor time variance, and 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.
Rate variance | $fill in the blank 1 | |
Time variance | $fill in the blank 3 | |
Total direct labor cost variance | $fill in the blank 5 |
b. The employees may have been less-experienced or poorly trained, thereby resulting in a ___higher/lower____ labor rate than planned. The lower level of experience or training may have resulted in___more/less____ efficient performance. Thus, the actual time required was ___more/less____ than standard.
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