Total Direct Labor Variance
A)Actual Quantity * Actual Price
B)(Actual Hours * Actual Rate) - (Standard Hours * Standard Rate)
C)(Actual Quantity * Actual Price) - (Standard Quantity * Standard Price)
D)(Actual Hours - Standard Hours) * Standard Rate
E)(Actual Price - Standard Price) * Actual Quantity
F)Standard Quantity* Standard Price
G)(Actual Rate - Standard Rate) * Actual Hours
H)(Actual Quantity - Standard Quantity) * Standard Price

Question

Quizplus · Accepted Answer

The Total Direct Labor Variance is calculated as the difference between the actual costs incurred for labor and the standard costs that should have been incurred for the actual level of output. Option B represents this calculation, where Actual Hours multiplied by Actual Rate is subtracted from Standard Hours multiplied by Standard Rate. This gives the total variance in terms of labor cost.