Final answer:
The direct labor rate variance is -$556, reflecting a favorable variance due to a lower actual rate. The direct labor time variance is $515.40, an unfavorable variance from extra hours worked. The total variance of -$40.60, a slight saving, combines these.
Step-by-step explanation:
The direct labor rate variance, direct labor time variance, and total direct labor cost variance can be calculated using the provided data. To find the direct labor rate variance, we compare the actual rate paid per hour to the standard rate expected, and multiply the difference by the actual hours worked. The direct labor time variance involves comparing the actual hours worked to the standard hours expected for the production, and then multiplying by the standard rate per hour. The total direct labor cost variance is the sum of the rate and time variances.
The negative value for the rate variance implies a favorable variance since the actual rate is lower than the standard rate. Conversely, the positive time variance suggests an unfavorable variance as more hours than standard were worked. The slight negative total variance indicates a modest overall cost savings.