Question

Direct Labor Variances The following data relate to labor cost for production of 3,800 cellular telephones: Actual: 2,540 hrs. at $15.2 2,500 hrs. at $15.5 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 Time variance Total direct labor cost variance b. The employees may have been less-experienced or poorly trained, thereby resulting in a lower V rate than planned. The lower level of experience or training may have resulted in less V efficient performance. Thus, the actual time required was more V than standard. Favorable v Unfavorable V Favorable labor Feedback Check My Work rim pd Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit). The labor cost variance is the difference between the actual and standard labor cost Consider factors affecting labor performance. y Potte df al Previous Next Check My Work All work saved. Email Instructor Save and Exit Submit Assignment for Grading

Answer 1

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