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Direct Labor Variances The following data relate to labor cost for production of 6,300 cellular...

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Direct Labor Variances The following data relate to labor cost for production of 6,300 cellular telephones: Actual: 4,270 hrs. at $12.50 4.270 hrs. Standard: 4,200 hrs. at $12.80 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 $ -1,281 Favorable Time variance $ 896 Unfavorable Total direct labor cost variance Favorable b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower v labor rate than planned. The lower level of experience or training may have resulted in less efficient performance. Thus, the actual time required was more than standard. Check My Wor Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). The labor cost variance is the difference between the actual and standard labor cost. Consider factors affecting labor performance

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