Direct Labor Variances The following data relate to labor cost for production of 4,700 cellular telephones: Actual: 3,200 hrs. at $13.60 Standard: 3,150 hrs. at $13.90 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 Favorable Time variance Unfavorable Total direct labor cost variance Favorable b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a lower V labor rate than planned. The lower level of experience or training may have resulted in less v efficient performance. Thus, the actual time required was more v than standard.

Direct Labor Variances The following data relate to labor cost for production of 4,700 cellular telephones: Actual: 3,200 hrs. at $13.60 Standard: 3,150 hrs. at $13.90 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 Favorable Time variance Unfavorable Total direct labor cost variance Favorable b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a lower V labor rate than planned. The lower level of experience or training may have resulted in less v efficient performance. Thus, the actual time required was more v than standard.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 8E: Direct labor variances The following data relate to labor cost for production of 20,000 cellular...

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