The direct labor price variance is calculated as:
A)(Actual Price - Standard Price)x Actual Quantity
B)(Standard Price - Actual Price)x Standard Quantity Allowed
C)(Standard Quantity Allowed - Actual Quantity)x Actual Price
D)(Actual Quantity - Standard Quantity Allowed)x Standard Price

Question

Quizplus · Accepted Answer

The direct labor price variance is calculated as the difference between the actual price paid for labor and the standard price that was expected to be paid, multiplied by the actual quantity of labor hours used. This is represented by the formula: (Actual Price - Standard Price) x Actual Quantity.

The Direct Labor Price Variance Is Calculated As