Direct Labor Variances

The Freedom Clothes Company produced 19,000 units during June of the current year. The Cutting Department used 3,600 direct labor hours at an actual rate of $13.00 per hour. The Sewing Department used 6,000 direct labor hours at an actual rate of $12.70 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $12.90. The standard labor time for the Cutting and Sewing departments is 0.20 hour and 0.30 hour per unit, respectively.

Determine the direct labor rate and time variance for the Cutting Department and Sewing Department. Use the minus sign to enter favorable variances as negative numbers.

	Cutting Department	Sewing Department
Rate variance:	$____________ Unfavorable Variance	$____________ Favorable Variance
Time variance:	$____________ Favorable Variance	$____________ Unfavorable Variance
Total direct labor cost variance:	$____________ Favorable Variance