irect Labor Variances

The following data relate to labor cost for production of 4,700 cellular telephones:

Actual:	3,140 hrs. at $16.30	$51,182
Standard:	3,190 hrs. at $16.10	$51,359

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	$	SelectFavorableUnfavorableItem 2
Time variance	$	SelectFavorableUnfavorableItem 4
Total direct labor cost variance	$	SelectFavorableUnfavorableItem 6

b. The employees may have been less experienced or poorly trained, thereby resulting in a SelecthigherlowerItem 7 labor rate than planned. The lower level of experience or training may have resulted in SelectmorelessItem 8 efficient performance. Thus, the actual time required was SelectmorelessItem 9 than standard.