Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). The labor cost variance is the difference between the actual and standard labor cost. Consider factors affecting labor performance.

Direct La hor Van'a noes The following data relate to labor cost for production of 6.900 cellular telephones: Actual: 4,660 hrs. at $15.9 Standard: 4,590 hrs. at $16.1 a. Determine Hie 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 posive number. Rate variance ail: Favorable \\f Time variance $l:] Unfavorable J Total direct labor cost variance till: Unfavorable \\f b. The employees mayr have been less-experienced or pearlyr trained, thereby resulting in a lower J labor rate than planned. The lower level of experience or training may have resulted in less if efficient performance. Thus, me actual me required was more if than standard