Direct Labor Variances The following data relate to labor cost for production of 5,200 cellular telephones: Actual: 3,480 hrs. at $15.00 Standard: 3,430 hrs. at $15.20 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 Time variance 744 X 760 Favorable Unfavorable Total direct labor cost variance Unfavorable b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower 16 X labor rate than planned. The lower level of experience or training may have resulted in less efficient performance. Thus, the actual tir required was more than standard.