The actual cost of direct labor per hour is $16.00 and the standard cost of direct labor per hour is $15.50.The direct labor hours allowed per finished unit is 0.5 hour.During the current period,5,500 units of finished goods were produced using 3,000 direct labor hours.How much is the direct labor rate variance?

Question

Quizplus · Accepted Answer

C)
Labor rate variance = (Actual rate per hour - Standard rate per hour)× actual hours
$1,500 U = (16.00 - $15.50)× 3,000

The Actual Cost of Direct Labor Per Hour Is $16