Direct Labor Variances

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

Actual: 4,290 hrs. at $13.70 Standard: 4,220 hrs. at $14.00

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.

Line Item Description	Amount	Variance
Rate variance	$fill in the blank 1	FavorableUnfavorableFavorable
Time variance	$fill in the blank 3	FavorableUnfavorableUnfavorable
Total direct labor cost variance	$fill in the blank 5	FavorableUnfavorableFavorable

b. The employees may have been less-experienced or poorly trained, thereby resulting in a fill in the blank 1 of 3

lower

labor rate than planned. The lower level of experience or training may have resulted in fill in the blank 2 of 3

less

efficient performance. Thus, the actual time required was fill in the blank 3 of 3

more

than standard.