-The direct labor rate variance is
A) $4,920 unfavorable
B) $4,920 favorable
C) $4,560 favorable
D) $4,560 unfavorable

Question

-The direct labor rate variance is
A) $4,920 unfavorable 
B) $4,920 favorable 
C) $4,560 favorable 
D) $4,560 unfavorable

Quizplus · Accepted Answer

The direct labor rate variance is calculated as the difference between the actual labor costs and the standard labor costs for the actual hours worked. If the actual costs are less than the standard costs, the variance is favorable. If the actual costs are more than the standard costs, the variance is unfavorable. Without specific numbers provided in the question, we cannot calculate the exact figure, but based on the options given, if a variance is described as favorable, it means the actual labor costs were less than expected, hence option B is correct.

-The Direct Labor Rate Variance Is