The direct labor rate variance is calculated by multiplying the standard hours that should have been worked for the actual output by the difference between the standard labor rate and the actual labor rate.

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The direct labor rate variance is calculated by multiplying the actual hours worked by the difference between the standard labor rate and actual labor rate. The formula is:
Direct Labor Rate Variance = (Actual Hours Worked x (Standard Labor Rate - Actual Labor Rate))

The Direct Labor Rate Variance Is Calculated by Multiplying the Standard