Direct Labor Variances
The following data relate to direct labor costs for the production of smart tablets.
| Actual: | 6,300 hrs. at $23.00 | $144,900 |
| Standard: | 6,000 hrs. at $24.50 | $147,000 |
a. Determine the rate variance, time variance, and total direct labor cost variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount.
| Rate variance | $ | |
| Time variance | ||
| Total direct labor cost variance | $ |
b. Which of the following statements regarding causes of these labor variances is false?