Direct Labor Variances Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct...

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Accounting

Direct Labor Variances
Ada Clothes Company produced 40,000 units during April. TheCutting Department used 12,800 direct labor hours at an actual rateof $16.50 per hour. The Sewing Department used 19,600 direct laborhours at an actual rate of $19.25 per hour. Assume there were nowork in process inventories in either department at the beginningor end of the month. The standard labor rate is $18.00. Thestandard labor time for the Cutting and Sewing departments is 0.3hour and 0.5 hour per unit, respectively.
a. Determine the direct labor rate, directlabor time, and total direct labor cost variance for the (1)Cutting Department and (2) Sewing Department. Enter a favorablevariance as a negative number using a minus sign and an unfavorablevariance as a positive number.
Cutting Department Sewing Department
Direct Labor Rate Variance $   $
Direct Labor Time Variance $   $
Total Direct Labor Cost Variance $   $
b. The two departments have opposite results.The Cutting Department has a(n)   rate variance anda(n)   time variance, resulting in atotal   cost variance. In contrast, the SewingDepartment has a(n)   rate variance but hasa(n)   time variance, resulting in atotal   cost variance.

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Cutting department Sewing department Direct Labour rate variance 19200 Favourable 24500 Unfavorable Direct Labour time variance 14400Unfavorable 7200Favourable Total direct Labor cost variance 4800Favorable 17300 Unfavorable Explanation Cutting department Rate variance Direct Labour rate variance Actual rate per hour Standard rate per hour Actual hours See Answer

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	Cutting Department	Sewing Department
Direct Labor Rate Variance	$	$
Direct Labor Time Variance	$	$
Total Direct Labor Cost Variance	$	$