Direct Labor Variances

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

Actual:	2,960 hrs. at $14.50
Standard:	2,910 hrs. at $14.70

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	$______________	favorable or unfavorable
Time variance	$______________	favorable or unfavorable
Total direct labor cost variance	$______________	favorable or unfavorable

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.