Direct Labor Variances

The following data relate to labor cost for production of 3,500 cellular telephones:

Actual:2,380 hrs. at $13.5Standard:2,340 hrs. at $13.7

a.Determine the direct laborrate variance, direct labortime variance, and total direct laborcost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Rate variance$fill in the blank 1

Unfavorable

Time variance$fill in the blank 3

Total direct labor cost variance$fill in the blank 5

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

efficient performance. Thus, the actual time required was

than standard.