Direct Labor Variances

The following data relate to labor cost for production of 7,200 cellular telephones:

Actual:	4,840 hrs. at $14.10
Standard:	4,760 hrs. at $14.30

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	$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 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.