The formula for the labor price variance is
A) (AH) x (SR) less (SH) x (SR).
B) (AH) x (AR) less (AH) x (SR).
C) (AH) x (AR) less (SH) x (SR).
D) (AH) x (SR) less (AH) x (SR).

Question

Quizplus · Accepted Answer

The labor price variance is calculated by comparing the actual hours worked at the actual rate to the actual hours worked at the standard rate. This is represented by the formula: (Actual Hours (AH) x Actual Rate (AR)) - (Actual Hours (AH) x Standard Rate (SR)).

The Formula for the Labor Price Variance Is