The labour rate variance is:
A) $440 F.
B) $440 U.
C) $480 F.
D) $480 U.

Question

Quizplus · Accepted Answer

Labour rate variance measures the difference between the actual labour rate paid and the standard labour rate. We can calculate the labour rate variance as follows:
Labour rate variance = (Actual labour rate - Standard labour rate) x Actual hours worked
Here, Actual labour rate = $11 per hour
Standard labour rate = $10 per hour
Actual hours worked = 400
Labour rate variance = ($11-$10) * 400 = $400 U
Therefore, the best choice is B, $440 U.

The Labour Rate Variance Is