-Calculate the direct labor rate variance.
A) $4,488.75 unfavorable
B) $6,851.25 favorable
C) $4,488.75 favorable
D) $6,851.25 unfavorable

Question

-Calculate the direct labor rate variance.
A) $4,488.75 unfavorable 
B) $6,851.25 favorable 
C) $4,488.75 favorable 
D) $6,851.25 unfavorable

Quizplus · Accepted Answer

The direct labor rate variance is calculated as the difference between the actual labor cost and the standard labor cost for the actual hours worked. If the actual cost is higher than the standard cost, the variance is unfavorable. Without specific numbers provided for the calculation, the correct answer cannot be determined through calculation. However, based on the options given, if we assume the question implies that the variance is unfavorable, then the correct choice would be "A) $4,488.75 unfavorable" as it is the only option that specifies an unfavorable variance with that specific amount.

-Calculate the Direct Labor Rate Variance