Question

please note where it says "Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number." idk if what i have is correct and idk the last part. please help. im on a time crunch

Direct Labor Variances The following data relate to labor cost for production of 6,400 cellular telephones: Actual: 4,320 hrs. at $14.00 4,250 hrs. at $14.30 Standard: 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 Favorable $ $ -1,296 1,001 Time variance Unfavorable Total direct labor cost variance $ -295 Favorable 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.

Answer 1

14.3 Per hour 4250 Hours 4320 hours 14.00 Per hour Data Standard Rate SR Standard Hours for Actual output SH Actual hours Worked AH Actual Rate AR Answers Rate Varaince (AR-SR)*AH=(14.00-14.30*4320 Time Varaince (AH-SH) SR=(4320-4250)*14.30 Total labor cost Varaince (SH*SR)-(AH-AR) -1296 Favorable 1001 Unfavorable -295 Favorable B The Employees may have been less-Experienced or poorly trained, there by Resuling in a Lower Labor rate than planned. The lower level of Experence or training may resulted in Less Efficiencent Performance, Ths, the actual time required was More than Standard

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