Reference no: EM132529101

The following data relate to labor cost for production of 4,000 cellular telephones:

Actual:            2,690 hrs. at $14.70

Standard:          2,650 hrs. at $15.00

Question 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.

Question 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.

NB: Based upon your answer to (a) use Less, More or Lower to fill in the blank in (b)