rect Labor Variances ne following data relate to labor cost for production of 7,200 cellular telephones: ctual: tandard: 4,850 hrs. at $15.20 4,770 hrs. at $15.50 Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative umber using a minus sign and an unfavorable variance as a positive number. ate variance ime variance otal direct labor cost variance 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 erformance. Thus, the actual time required was than standard.
rect Labor Variances ne following data relate to labor cost for production of 7,200 cellular telephones: ctual: tandard: 4,850 hrs. at $15.20 4,770 hrs. at $15.50 Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative umber using a minus sign and an unfavorable variance as a positive number. ate variance ime variance otal direct labor cost variance 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 erformance. Thus, the actual time required was than standard.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Direct Labor Variances
The following data relate to labor cost for production of 7,200 cellular telephones:
Actual:
4,850 hrs. at $15.20
Standard:
4,770 hrs. at $15.50
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
%24
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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