Direct Labor Variances

The following data relate to labor cost for production of 6,300 cellular telephones:

Actual:	4,220 hrs. at $13.30	$56,126
Standard:	4,290 hrs. at $13.00	$55,770

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.

Standard Product Cost, Direct Materials Variance

Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,200 pounds) has the following standards:

	Standard Quantity		Standard Price
Whole tomatoes	2,000	lbs.	$ 0.51	per lb.
Vinegar	110	gal.	3.10	per gal.
Corn syrup	9	gal.	11.30	per gal.
Salt	44	lbs.	2.80	per lb.

The actual materials in a batch may vary from the standard due to tomato characteristics. Assume that the actual quantities of materials for batch K-54 were as follows:

2,100 lbs. of tomatoes

106 gal. of vinegar

10 gal. of corn syrup

43 lbs. of salt

a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent.

b. Determine the direct materials quantity variance for batch K-54. If required, round amounts to the nearest cent. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Rate variance S 1266 Unfavorable Time variance 0.01 Favorable | s 356 Total direct labor cost variance Unfavorable The employes may have beon less experianced or poorly trained, thereby resulting in a (higher- labor rate than planned. The lower level of experience or training may have resulted in more labor rate than planned. The lower level of experience or training may have resulted in (re b. The employees may have been less experienced or poorly trained, thereby resulting in a higher efficient performance. Thus, the actual time required was less than standard