Question

Direct Labor Variances The following data relate to labor cost for production of 6,000 cellular telephones:

Actual: 4,050 hrs. at $16.3

Standard: 3,990 hrs. at $16.6

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 $

Time variance $

Total direct labor cost variance $

b. The employees may have been less-experienced or poorly trained, thereby resulting in _______ (Higher or lower) a labor rate than planned. The lower level of experience or training may have resulted in _______(More or less) an efficient performance. Thus, the actual time required was______(more or less) than standard.

Answer 1

b. The employee may have less experienced or poorly trained, thereby resulting in lower a labor rate than planned.

The lower level experience or training may have resulted in less than efficient performance.

Thus the actual time required was more than standard