The actual hourly rate paid above or below the standard hourly rate,multiplied by the actual number of hours worked is the:

Question

Quizplus · Accepted Answer

The actual hourly rate paid above or below the standard hourly rate is the labor rate variance. When this variance is multiplied by the actual number of hours worked, it gives the total amount of money saved or spent due to the difference in the actual hourly rate paid and the standard hourly rate. Therefore, labor rate variance is the correct choice.

The Actual Hourly Rate Paid Above or Below the Standard