EX $23-10$ Direct labor variances

OBJ. $3$

Greeson Clothes Company produced $25,000$ units during June of the current year. The Cutting Department used $6,380$ direct labor hours at an actual rate of $$10\mathrm{.}90$ per hour. The Sewing Department used $9,875$ direct labor hours at an actual rate of $$11\mathrm{.}12$ per hour. Assume that there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $$11\mathrm{.}00.$ The standard labor time for the Cutting and Sewing departments is $0\mathrm{.}25$ hour and $0\mathrm{.}40$ hour per unit, respectively.

a$.$ Determine the direct labor rate, direct labor time, and total direct labor cost variance for the $(1)$ Cutting Department and $(2)$ Sewing Department.

b$.$ Interpret your results.