Direct Labor Variances The following data relate to labor cost for production of 5,400 cellular telephones: 3,640 hrs. at Actual: Standard: $15.80 3,580 hrs. at $16.00 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 Favorable Total direct labor cost variance Unfavorable Unfavorable 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.