Question
Direct Labor Variances The following data relate to labor cost for production of 6,000 cellular telephones: Actual: 4,050 hrs. at $16.3 Standard: 3,990 hrs. at
Direct Labor Variances The following data relate to labor cost for production of 6,000 cellular telephones:
Actual: 4,050 hrs. at $16.3
Standard: 3,990 hrs. at $16.6
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 _______ (Higher or lower) a labor rate than planned. The lower level of experience or training may have resulted in _______(More or less) an efficient performance. Thus, the actual time required was______(more or less) than standard.
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