Direct Labor Variances The following data relate to labor cost for production of 6,700 cellular telephones: 4,510 hrs. at $14.90 4,440 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. Actual: Standard: Rate variance Time variance Total direct labor cost variance b. The employees may have been less-experienced or poorly trained, thereby resulting in a experience or training may have resulted in labor rate than planned. The lower level of efficient performance. Thus, the actual time required was 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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Direct Labor Variances
The following data relate to labor cost for production of 6,700 cellular telephones:
4,510 hrs. at $14.90
4,440 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.
Actual:
Standard:
Rate variance
Time variance
Total direct labor cost variance
b. The employees may have been less-experienced or poorly trained, thereby resulting in a
experience or training may have resulted in
labor rate than planned. The lower level of
than standard.
efficient performance. Thus, the actual time required was
Transcribed Image Text:Direct Labor Variances The following data relate to labor cost for production of 6,700 cellular telephones: 4,510 hrs. at $14.90 4,440 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. Actual: Standard: Rate variance Time variance Total direct labor cost variance b. The employees may have been less-experienced or poorly trained, thereby resulting in a experience or training may have resulted in labor rate than planned. The lower level of than standard. efficient performance. Thus, the actual time required was
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