PQ$9$: Direct Labor Variances $($Obj$.3)$

Ada Clothes Company produced $40,000$ units during April. The Cutting Department used $12,800$ direct labor hours at an actual rate of $$16\mathrm{.}50$ per hour. The Sewing Department used $19,600$ direct labor hours at an actual rate of $$19\mathrm{.}25$ per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $$18\mathrm{.}00.$ The standard labor time for the Cutting and Sewing departments is $0\mathrm{.}3$ hour and $0\mathrm{.}5$ hour per unit, respectively.

Required:

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

Interpret your results.

Instructions $($PQs$)$:

FORMAT: Must submit using an Excel worksheet. Dollar signs, commas, single lines, and double lines must be used when required. Note: Using any other format than Excel will receive a $10-$point deduction.

COMPUTATIONS: All required computations must be performed using Excel. Note: Not performing all required computations using excel will receive a $5-$noint deduction