Direct Labor Variances The following data relate to labor cost for production of 5,300 cellular telephones: 3,580 hrs. at $15.60 3,520 hrs. at $15.80 Actual: Standard: 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 Unfavorable Time variance Total direct labor cost variance Unfavorable b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower training may have resulted in less V ✔efficient performance. Thus, the actual time required was more labor rate than planned. The lower level of experience or ✓than standard.

Direct Labor Variances The following data relate to labor cost for production of 5,300 cellular telephones: 3,580 hrs. at $15.60 3,520 hrs. at $15.80 Actual: Standard: 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 Unfavorable Time variance Total direct labor cost variance Unfavorable b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower training may have resulted in less V ✔efficient performance. Thus, the actual time required was more labor rate than planned. The lower level of experience or ✓than standard.

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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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