Direct Labor VariancesThe following data relate to labor cost for production of 33,000 cellular telephones:Actual:Standard:6,330 hrs. at $49.506,240 hrs. at $51.00a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative numberusing a minus sign and an unfavorable variance as a positive number.$SAAFavorableUnfavorable✓Favorableb. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in alower labor rate than planned. The lower level of experience or training may have resulted in less ✔ efficient performance. Thus, the actual timerequired was more ✔ than standard.Rate varianceTime varianceTotal direct labor cost variance

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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