Answer Happy

Direct Labor Variances The following data relate to labor cost for production of 5,400 cellular telephones: 3,640 hrs. at Actual: $15.80 Standard: 3,580 hrs. at $16.00 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 Unfavorable Total direct labor cost variance ✓ labor rate than planned. The lower level of experience or training may have resulted in less b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower more ✔✔than standard. efficient performance. Thus, the actual time required was