Direct Labor Variances

The following data relate to labor cost for production of 4,800 cellular telephones:

Actual:	3,230 hrs. at $13.3
Standard:	3,180 hrs. at $13.5

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	$
Time variance	$
Total direct labor cost variance	$

b. The employees may have been less-experienced or poorly trained, thereby resulting in a labor rate than planned. The lower level of experience or training may have resulted in efficient performance. Thus, the actual time required was than standard.