Chapter 22, Problem 5DQ

A.

To determine

Direct labor variances:

The difference between the actual labor cost in the production and the standard labor cost for actual production is known as direct labor cost variance. The direct labor variance can be classified as follows:

• Labor rate variance.
• Labor time variance.

To indicate: The two variances between the actual cost, and standard cost for direct labor.

B.

To determine

To identify: The person, who generally has control over the direct labor cost variances.