Direct Labor Variances

The following data relate to labor cost for production of $4,800$ cellular telephones:

Actual: $3,260$ hrs$.$ at $$15\mathrm{.}60$

Standard: $3,210$ hrs$.$ at $$15\mathrm{.}80$

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 $1$

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 fill in the blank $1$ of $3$

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

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

than standard.