Use the following data to find the direct labor rate variance.
$\begin{array}{ll}
\text { Direct labor standard (4 hrs. }@ & \$ 28 \text { per unit } \
\$ 7 / \text { hr.) } & \
\text { Actual hours worked per unit } & 3.5 \text { hours } \
\text { Actual units produced } & 3,500 \text { units } \
\text { Actual rate per hour } & \$ 7.50
\end{array}$

Question

Quizplus · Accepted Answer

The direct labor rate variance is calculated as (Actual Rate - Standard Rate) x Actual Hours Worked. Here, it is ($7.50 - $7.00) x (3.5 hours/unit x 3,500 units) = $0.50 x 12,250 hours = $6,125 unfavorable.

Use the Following Data to Find the Direct Labor Rate