If the standard to produce a given amount of product is 600 direct labor hours at $17 and the actual direct labor incurred is 500 hours at $15, the direct labor time variance is $1,500 unfavorable.

Direct Labor Time Variance

The difference between the actual hours and the standard hours of direct labor spent producing a product multiplied by the standard direct labor rate per hour.

Direct Labor

The cost of employee wages that is directly associated with the manufacturing of products or the provision of services.

Unfavorable

A term used to describe a situation or outcome that is not advantageous, detrimental, or negatively impacts objectives.