Direct Labor Variances

The following data relate to labor cost for production of $6,600$ cellular telephones:

Actual: $4,460$ hrs$.$ at $$15\mathrm{.}3$

Standard: $4,390$ hrs$.$ at $$15\mathrm{.}6$

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 $

fill in the blank $1$

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.