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The following data relate to labor cost for production of 6 , 8 0 0 cellular telephones: Actual: 4 , 5 9 0 hrs .

The following data relate to labor cost for production of 6,800 cellular telephones:
Actual: 4,590 hrs. at $14.80
Standard: 4,520 hrs. at $15.10
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
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 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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