The labor rate variance is computed by
A)(Actual Rate ´ Actual Hours)- (Standard Rate ´ Standard Hours).
B)(Standard Rate ´ Actual Rate)- (Actual 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 taking the difference between the actual rate paid and the standard rate, then multiplying by the actual hours worked: (Actual Rate × Actual Hours) - (Standard Rate × Actual Hours).

The Labor Rate Variance Is Computed by