Direct Labor Variances
Primm Company produces a product that requires three standard hours per unit at a standard hourly rate of $20 per hour. If 2,500 units required 7,900 hours at an hourly rate of $21.50 per hour, what is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Use the minus sign to enter favorable variances as negative numbers.
a. Direct labor rate variance
b. Direct labor time variance
c. Direct labor cost variance