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The following data relate to labor cost for production of 5 , 3 0 0 cellular telephones: Actual: 3 , 5 9 0 hrs .
The following data relate to labor cost for production of cellular telephones:
Actual: hrs at $
Standard: hrs at $
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
Time variance $fill in the blank
Total direct labor cost variance $fill in the blank
b The employees may have been lessexperienced workers who were paid less than moreexperienced 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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