Direct Labor Variances The following data relate to labor cost for production of 6,800 cellular telephones: Actual: 4,620 hrs. at $14.6 $ Standard: 4,550 hrs. at $14.9 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 $ 1,386 X Unfavorable X Time variance - 1,043 X Favorable X Total direct labor cost variance $ 343 X Unfavorable X b. The employees may have been less-experienced or poorly trained, thereby resulting in a higher x labor rate than planned. The lower level of experience or training may have resulted in more efficient performance. Thus, the actual time required was more than standard Standard Product Cost, Direct Materials Variance Condiments Company uses standards to control its materials costs. Assume that a batch of ketchup (1,100 pounds) has the following standards: Standard Quantity Standard Price Whole tomatoes 1,800 lbs. $ 0.40 per lb Vinegar 100 gal. $ 2.40 per gal. Corn syrup 9 gal $8.90 per gal. Salt 40 lbs. $ 2.20 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-111 were as follows: 1,900 lbs. of tomatoes 96 gal. of vinegar 10 gal. of corn syrup 39 lbs. of salt a. Determine the standard unit materials cost per pound for a standard batch. If required, round amounts to the nearest cent. Ingredient Standard Cost per Batch Whole tomatoes 7207 Vinegar 240 Corn syrup 80 X Salt 88 Total $ 1,128 x Standard unit materials cost per pound 1.03 b. Determine the direct materials quantity variance for batch K-111. 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 Ingredient Materials Quantity Variance favorable/Unfavorable whole tomatoes $ 1,180 X Unfavorable Vinegar -144 X Favorable Corn syrup 70.1 x Favorable X Salt $ -49 X Favorable Total direct materials quantity variance $ 916.9 X Unfavorable