Direct Labor Variances

The following data relate to labor cost for production of $5,300$ cellular telephones:

Actual: $3,590hrs.$ at $$14\mathrm{.}30$

Standard: $3,530hrs.$ at $$14\mathrm{.}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

Total direct labor cost variance

$

$

$

Favorable $vv$

Unfavorable $$

b$.$ The employees may have been less$-$experienced or poorly trained, thereby resulting in a

$$

labor rate than planned. The lower level of experience or training may have resulted in less $$ efficient

performance. Thus, the actual time required was

i $$ than standard.