Direct Labor Variances The following data relate to tabor cost for production of 6,500 cellular telephones: Actual: 4,380 hrs. at $15.60 Standard: 4,310 hrs. at $15.90 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable vartance as a negative number using a minus sign and an unfavorable variance as a positive number Rate variance Favorable Time variance Unfavorable Total direct labor cost variance Favorable b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a lower labor rate than planned. The lower level of experience or training may have resulted in less efficient performance. Thus, the actual time required was more than standard