The Labour Rate Variance Is Calculated as

The labour rate variance is calculated as

A) (Actual hourly wage rate - Standard hourly wage rate) * Actual direct labour hours used.
B) (Actual hourly wage rate - Standard hourly wage rate) * Standard direct labour hours that should have been used.
C) (Actual direct labour hours used - Standard direct labour hours that should have been used) * Actual hourly wage rate.
D) (Actual direct labour hours used - Standard direct labour hours that should have been used) * Standard hourly wage rate.