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Direct Labor Variances Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct labor hours at an actual rate of $16.50 per hour. The Sewing Department used 19,600 direct labor hours at an actual rate of $19.25 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 $18.00. The standard labor time for the Cutting and Sewing departments is 0.3 hour and 0.5 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. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Cutting Department Direct Labor Rate Variance 24,500 x Favorable Direct Labar Time Variance 14,400 Unfavorable Total Direct Labor Cost Variance 7,200 x Favorable b. The two departments have opposite results. The Cutting Department has a(n) favorable variance and a(n) unfavorable time variance, resulting in a total favorable cost variance. In contrast, the Sewing Department has a[n) unfavorable rate variance but has a(n) favorable time variance, resulting in a total unfavorable cost variance. rate

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