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Question - Direct Labor Variances - The following data relate to labor cost for production of 4,800 cellular telephones:
Actual: 3,260 hrs. at $15.50
Standard: 3,210 hrs. at $15.70
a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance.
b. The employees may have been less-experienced or poorly trained, thereby resulting in a higher-lower labor rate than planned. The lower level of experience or training may have resulted in more-less efficient performance. Thus, the actual time required was more-less than standard.
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