Direct Labor Variances The following data relate to labor cost for production of 5,200 cellular telephones:...
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Direct Labor Variances The following data relate to labor cost for production of 5,200 cellular telephones: Actual: 3,480 hrs. at $15.00 Standard: 3,430 hrs. at $15.20 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 744 X 760 16 X Favorable Unfavorable Unfavorable b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower planned. The lower level of experience or training may have resulted in less required was more than standard. labor rate than efficient performance. Thus, the actual time Direct Labor Variances The following data relate to labor cost for production of 5,200 cellular telephones: Actual: 3,480 hrs. at $15.00 Standard: 3,430 hrs. at $15.20 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 744 X 760 16 X Favorable Unfavorable Unfavorable b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower planned. The lower level of experience or training may have resulted in less required was more than standard. labor rate than efficient performance. Thus, the actual time
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