Direct Labor Variances The following data relate to labor cost for production of 4,100 cellular telephones: Actual: 2,750 hrs. at $13.00 Standard: 2,710 hrs. at $13.30 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 $ Time variance $ Total direct labor cost variance $ b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a v efficient performance. Thus, the actual time required was v labor rate than planned. The lower level of experience or training may have resulted in than standard.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Direct Labor Variances
The following data relate to labor cost for production of 4,100 cellular telephones:
Actual:
2,750 hrs. at $13.00
Standard:
2,710 hrs. at $13.30
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
$
Time variance
$
Total direct labor cost variance
b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a
labor rate
than planned. The lower level of experience or training may have resulted in
efficient performance. Thus, the actual time required was
than
standard.
Transcribed Image Text:Direct Labor Variances The following data relate to labor cost for production of 4,100 cellular telephones: Actual: 2,750 hrs. at $13.00 Standard: 2,710 hrs. at $13.30 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 $ Time variance $ Total direct labor cost variance b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a labor rate than planned. The lower level of experience or training may have resulted in efficient performance. Thus, the actual time required was than standard.
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