1. eBook

   Show Me How

   Question Content Area

   Direct Labor Variances

   The following data relate to labor cost for production of 3,300 cellular telephones:

   Actual:	2,240 hrs. at $15.80
   Standard:	2,200 hrs. at $16.10

   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	FavorableUnfavorable
   Time variance	$fill in the blank 3	FavorableUnfavorable
   Total direct labor cost variance	$fill in the blank 5	FavorableUnfavorable

   b. The employees may have been less-experienced or poorly trained, thereby resulting in a

   higherlower

   labor rate than planned. The lower level of experience or training may have resulted in

   moreless

   efficient performance. Thus, the actual time required was

   moreless

   than standard.