Direct Labor Variances

The following data relate to labor cost for production of $6,200$ cellular telephones:

Actual: $,4,220hrs.$ at $$15\mathrm{.}7$

Standard: $,4,150hrs.$ at $$16$ variance as a positive number.

Rate variance

Time variance

Total direct labor cost variance labor rate than planned. The lower level of experience or training may have $r$

b$.$ The employees may have been less$-$experienced or poorly trained, thereby resulting in efficient performance. Thus, the actual time required was than standard.