Which one of the following is defined as the difference between the actual hourly wage rate and the standard hourly wage rate, multiplied by the actual number of direct labor hours (DLHs) worked during a period?
A) The total direct labor standard cost variance.
B) The direct labor efficiency variance.
C) The direct labor usage variance.
D) The direct labor flexible-budget variance.
E) The direct labor rate variance.

Question

Quizplus · Accepted Answer

The direct labor rate variance is calculated as the difference between the actual hourly wage rate and the standard hourly wage rate, multiplied by the actual number of direct labor hours worked. This variance measures how much the actual labor costs differ from what was expected (the standard) due to the rate of pay.

Which One of the Following Is Defined as the Difference