Which of the following correctly lists all the information needed to calculate a labor rate variance?
A)Standard labor rate and actual hours worked.
B)Actual hours worked and actual units produced.
C)Standard labor rate,actual labor rate,and actual units produced.
D)Actual labor rate and actual hours workeD.
E)Actual labor rate,standard labor rate,and actual hours worked.

Question

Quizplus · Accepted Answer

A labor rate variance is calculated by comparing the actual labor rate paid to the standard labor rate. Actual hours worked are used in calculating the labor efficiency variance, not the labor rate variance. Actual units produced are also not needed to calculate the labor rate variance. Therefore, the correct answer is E, which lists the standard labor rate, the actual labor rate, and the actual hours worked.

Which of the Following Correctly Lists All the Information Needed