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Direct Labor Variances The following data relate to labor cost for production of 5,600 cellular telephones: Actual: 3,750 hrs. at $15.30 Standard: 3,690 hrs.

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Direct Labor Variances The following data relate to labor cost for production of 5,600 cellular telephones: Actual: 3,750 hrs. at $15.30 Standard: 3,690 hrs. at $15.50 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 Unfavorable Total direct labor cost variance x Unfavorable b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower training may have resulted in less efficient performance. Thus, the actual time required was more labor rate than planned. The lower level of experience or than standard

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