Direct Labor Variances The following data relate to labor cost for production of 5,900 cellular telephones: Actual: 4,000 hrs. at $15.50   Standard: 3,940 hrs. at $15.70   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 $    Time variance $    Total direct labor cost variance $    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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Direct Labor Variances

The following data relate to labor cost for production of 5,900 cellular telephones:

Actual: 4,000 hrs. at $15.50  
Standard: 3,940 hrs. at $15.70  

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 $   
Time variance $   
Total direct labor cost variance $   

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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