Which of the following is used to compute the labor rate variance?
A) (Fixed rate × Actual hours) - (Variable rate × Standard hours)
B) (Variable rate × Standard rate) - (Fixed rate × Actual hours)
C) (Actual rate × Standard hours) - (Standard rate × Actual hours)
D) (Actual rate × Actual hours) - (Standard rate × Actual hours)
E) None of these.

Question

Quizplus · Accepted Answer

The labor rate variance is calculated by comparing the actual cost of labor per hour (actual rate) to the expected (or standard) cost of labor per hour (standard rate), and then multiplying the difference by the actual number of hours worked. This is represented by the formula: (Actual rate × Actual hours) - (Standard rate × Actual hours).

Which of the Following Is Used to Compute the Labor