Direct Labor Variances

The following data relate to labor cost for production of 3,700 cellular telephones:

Actual:	2,530 hrs. at $14.5
Standard:	2,490 hrs. at $14.8

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/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 or 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.