Direct Labor Variances

The following data relate to labor cost for production of 5,300 cellular telephones:

Actual: 3,570 hrs. at $15.2 Standard: 3,510 hrs. at $15.5

a. Determine the direct labor The cost associated with the difference between the standard rate and the actual rate paid for direct labor used in producing a commodity.rate variance, direct labor The cost associated with the difference between standard and actual hours of direct labor spent for producing a commodity.time variance, and total direct labor The difference between actual cost and the flexible budget at actual volumes.cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Rate variance $

Favorable Unfavorable

Time variance $

Favorable Unfavorable

Total direct labor cost variance $

Favorable Unfavorable

b. 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