The following data relate to direct labor costs for the current period: Standard costs
9,000 hours at $5.50
Actual costs
8,500 hours at $5.75
The direct labor rate variance is
A)$2,250 unfavorable
B)$2,125 unfavorable
C)$2,250 favorable
D)$2,125 favorable

Question

Quizplus · Accepted Answer

The direct labor rate variance is calculated as (Actual Hourly Rate - Standard Hourly Rate) x Actual Hours Worked. Here, it is ($5.75 - $5.50) x 8,500 = $0.25 x 8,500 = $2,125 unfavorable.

The Following Data Relate to Direct Labor Costs for the Current