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The following data relate to labor cost for production of 33,000 cellular telephones: Actual: 6,330 hrs. at $49.50 Standard: 6,240 hrs. at $51.00 a. Determine

The following data relate to labor cost for production of 33,000 cellular telephones:

Actual: 6,330 hrs. at $49.50
Standard: 6,240 hrs. at $51.00

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

b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a labor rate than planned. The lower level of experience or training may have resulted in efficient performance. Thus, the actual time required was than standard.

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