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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

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.

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