Which of the following formula is used to calculate direct labor rate variance?
A) Actual Costs + (Actual hours × Standard Rate)
B) Actual costs - Standard cost
C) (Actual hours × Standard rate) - Standard costs
D) Actual costs - (Actual hours × Standard rate)

Question

Quizplus · Accepted Answer

Direct labor rate variance is the difference between actual labor costs and the labor costs that were expected or budgeted. The formula to calculate direct labor rate variance is Actual costs - (Actual hours × Standard rate).

Which of the Following Formula Is Used to Calculate Direct