Which of the following equations measures the direct labor rate variance?
A)(SR × AH) − (SR × SH)
B)(AR × SH) − (SR × AH)
C)(AR × AH) − (SR × AH)
D)none of these

Question

Quizplus · Accepted Answer

The direct labor rate variance is calculated as (Actual Rate (AR) × Actual Hours (AH)) − (Standard Rate (SR) × Actual Hours (AH)). This measures the difference between what the labor actually cost and what it should have cost at the standard rate.

Which of the Following Equations Measures the Direct Labor Rate