Direct Labor Variances The following data relate to labor cost for production of 4,900 cellular telephones: 3,290 hrs. at $14.20 3,240 hrs. at $14.40 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. Actual: Standard: Rate variance Time variance Total direct labor cost variance $ Favorable 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. Direct Labor Variances Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October of the current year are available: Quantity of direct labor used Actual rate for direct labor Bicycles completed in October Standard direct labor per bicycle Standard rate for direct labor $13.50 per hr. 360 bicycles 2 hrs. $13.80 per hr. a. Determine for October 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. Direct Labor Rate Variance Direct Labor Time Variance 770 hrs. Total Direct Labor Cost Variance $ $ b. How much direct labor should be debited to Work in Process? $ Favorable Unfavorable Unfavorable The data related to Shunda Enterprises Inc.'s factory overhead cost for the production of 50,000 units of product are as follows: Variable factory overhead $173,100 Fixed factory overhead 125,900 Standard: 76,000 hrs. at $4 ($2.30 for variable factory overhead) 304,000 Actual: Productive capacity at 100% of normal was 75,000 hours, and the factory overhead cost budgeted at the level of 76,000 standard hours was $302,200. Based on these data, the chief cost accountant prepared the following variance analysis: Variable factory overhead controllable variance: Actual variable factory overhead cost incurred Budgeted variable factory overhead for 76,000 hours Variance-favorable Fixed factory overhead volume variance: Normal productive capacity at 100% Standard for amount produced Productive capacity not used Standard variable factory overhead rate Variance-unfavorable $173,100 (174,800) 75,000 hrs. (76,000) 1,000 hrs. x $4 $(1,700) 4,000 Compute the following to assist you in identifying the errors in the factory overhead cost variance analysis. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. Favorable/Unfavorable Favorable Variance Variable Factory Overhead Controllable Variance Fixed Factory Overhead Volume Variance Total Factory Overhead Cost Variance Amount Favorable Favorable