Question
Direct Labor Variances The following data relate to labor cost for production of 5,300 cellular telephones: Actual: 3,560 hrs. at $13 Standard: 3,500 hrs. at
Direct Labor Variances The following data relate to labor cost for production of 5,300 cellular telephones: Actual: 3,560 hrs. at $13 Standard: 3,500 hrs. at $13.3 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.
The employees may have been less-experienced or poorly trained, thereby resulting in a (higher/lower) labor rate than planned. The lower level of experience or training may have resulted in (more/less) efficient performance. Thus, the actual time required was (more/less) than standard.
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