*Actual hours are equal to standard hours for units produced.
-Which of the following is the correct formula for the direct labor time variance in a service business?
A)Planned Staff Hours - Actual Staff Hours
B)(Actual Staff Hours - Standard Staff Hours) × Actual Rate per Hour
C)(Actual Staff Hours - Standard Staff Hours) × Standard Rate per Hour
D)(Actual Staff - Planned Staff) × Actual Rate per Hour × Standard Shift Hours

Question

​  
*Actual hours are equal to standard hours for units produced.​
-Which of the following is the correct formula for the direct labor time variance in a service business?
A)Planned Staff Hours - Actual Staff Hours 
B)(Actual Staff Hours - Standard Staff Hours) × Actual Rate per Hour 
C)(Actual Staff Hours - Standard Staff Hours) × Standard Rate per Hour 
D)(Actual Staff - Planned Staff) × Actual Rate per Hour × Standard Shift Hours

Quizplus · Accepted Answer

The direct labor time variance in a service business is calculated by the formula: (Actual Staff Hours - Standard Staff Hours) × Standard Rate per Hour. This measures the difference between the actual hours worked and the standard hours expected to be worked, valued at the standard rate per hour.

​ *Actual Hours Are Equal to Standard Hours for Units Produced.​

*Actual Hours Are Equal to Standard Hours for Units Produced.