The labour rate variance is:
A) $1,125 U.
B) $1,125 F.
C) $2,500 F.
D) $2,500 U.

Name: The labour rate variance is: A) $1,125 U. B) $1,125 F. C) $2,500 F. D) $2,500 U.
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Question

Quizplus · Accepted Answer

The labor rate variance is calculated as (Actual Hours x Actual Rate) - (Actual Hours x Standard Rate). If the actual rate is higher than the standard rate, the variance is unfavorable (U). The given variance of $1,125 U indicates an unfavorable variance.

The Labour Rate Variance Is