Direct Labor Variances The following data relate to labor cost for production of 22,000 cellular...
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Accounting
Direct Labor Variances
The following data relate to labor cost for production of 22,000 cellular telephones:
Actual:
4,220 hrs. at $44.50
Standard:
4,160 hrs. at $46.00
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
$
Time variance
$
Total direct labor cost variance
$
b. The employees may have been less-experienced workers who were paid less than more-experienced workers 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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