Match the variance with its correct calculation.
-Labor Rate 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

Labor Rate Variance is calculated as (Actual Rate − Standard Rate) × Actual Hours, which matches choice G. This variance measures the difference between what was actually paid per hour for labor and what was expected to be paid, multiplied by the number of hours worked.

Match the Variance with Its Correct Calculation