Chemical Supply Incorporated budgeted two and one half hours of direct labor per unit at $11.75 per hour to produce 650 units of product.The 650 units were completed using 1,750 hours of direct labor at $12.50 per hour.What is the direct labor rate variance?

Question

Quizplus · Accepted Answer

D)
Labor rate variance = (Actual rate per hour - Standard rate per hour for actual output)× actual hours
$1,313 U = ($12.50 - $11.75)× 1,750

Chemical Supply Incorporated Budgeted Two and One Half Hours of Direct