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Direct Labor Variances The following data relate to labor cost for production of 5,600 cellular telephones: Actual: 3,800 hrs. at $13.70 Standard: 3,740 hrs. at

Direct Labor Variances

The following data relate to labor cost for production of 5,600 cellular telephones:

Actual: 3,800 hrs. at $13.70 Standard: 3,740 hrs. at $13.90

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
FavorableUnfavorable
Time variance $fill in the blank 3
FavorableUnfavorable
Total direct labor cost variance $fill in the blank 5
FavorableUnfavorable

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

higherlower
labor rate than planned. The lower level of experience or training may have resulted in fill in the blank 2 of 3
lessmore
efficient performance. Thus, the actual time required was fill in the blank 3 of 3
lessmore
than standard.

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