Chapter 8, Problem 10E

To determine

(a) (1)

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.

Cutting department:

The direct labor rate variance for the cutting department.

(b)

To determine

To interpret: The results of (a).