Consider the following information: $\begin{array}{lr}
\text { Actual direct labour hours } & \$ 44,500 \
\text { Standard direct labour hours } & 45,000 \
\text { Total actual direct labour cost } & 315,950 \
\text { Direct labour efficiency variance } & 3,400
\end{array}$ The direct-labour rate variance is:

Question

Quizplus · Accepted Answer

Direct labour rate variance = (Actual hourly rate – Standard hourly rate) x Actual hours

Let x be the actual hourly rate.

We can set up the equation as follows:

3,400 = (x – $7) x 44,500

Solving for x:

x – $7 = $0.0764

x = $7.0764

Direct labour rate variance = ($7.0764 – $7) x 44,500 = $13,350U

Therefore, the correct answer is C.

Consider the Following Information The Direct-Labour Rate Variance Is: A)$3,400U

Consider the Following Information The Direct-Labour Rate Variance Is:
A)$3,400U