Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450
hours per the standard cost card. Their employees were paid $15.75 per hour for the month of June. The
standard cost card uses $15.50 as the standard hourly rate.
A. Compute the direct labor rate and time variances for the month of June, and also calculate the total
direct labor variance.
B. If the standard rate per hour was $16.00, what would change?