The following data relate to labor cost for production of, Accounting Basics

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The following data relate to labor cost for production of

direct labor variances

The following data relate to labor cost for production of 20,000 cellular telephones:

Actual: 8,450 hrs. at $22.50

Standard: 8,400 hrs. at $23.00

a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance.

b. Discuss what might have caused these variances.

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