Direct Labor Variances

The following data relate to labor cost for production of $6,100$ cellular telephones:

Actual: $,4,110hrs.$ at $$13\mathrm{.}7$

Standard: $,4,050hrs.$ at $$14$

a$.$ Determine the direct labor rate variance, direct labor time variarice, 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

$$ Favorable $$

Total direct labor cost variance

$$ Unfavorable $$

$$ Favorable $$

b$.$ The employees may have been less$-$experienced or poorly trained, thereby resulting in a lower $$ labor rate than planned. The lower level of experience or training may have resulted in less $$ efficient performance. Thus, the actual time required was more $$ than standard.