Direct Labor Variances

The following data relate to labor cost for production of 4,600 cellular telephones:

Actual: 3,130 hrs. at $13.10 Standard: 3,080 hrs. at $13.30

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.

Line Item Description	Amount	Variance
Rate variance	$fill in the blank 1	FavorableUnfavorable
Time variance	$fill in the blank 3	FavorableUnfavorable
Total direct labor cost variance	$fill in the blank 5	FavorableUnfavorable

b. The employees may have been less-experienced or poorly trained, thereby resulting in a fill in the blank 1 of 3

higherlower

labor rate than planned. The lower level of experience or training may have resulted in fill in the blank 2 of 3

lessmore

efficient performance. Thus, the actual time required was fill in the blank 3 of 3

lessmore

than standard.