Direct Labor Variances

The following data relate to labor cost for production of $3,200$ cellular telephones:

Actual: $,2,130$ hrs$.$ at $$16$

Standard: $,2,100$ hrs$.$ at $$16\mathrm{.}2$

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

Time variance

Total direct labor cost variance

b$.$ The employees may have been less$-$experienced or poorly trained, thereby resulting in a

training may have resulted in

$

$

$

Favorable

Unfavorable

Unfavorable

labor rate than planned. The lower level of experience or

efficient performance. Thus, the actual time required was

than standard.