Direct Labor Variances

The following data relate to labor cost for production of $4,400$ cellular telephones:

Actual: $2,970$ hrs$.$ at $$16\mathrm{.}10$

Standard: $2,920hrs$ at $$16,30$

Rate variance

Time varlance

Total dinert labor cost varlance &

b$.$ The employees may have been less$-$expenenced or pootly 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.