Which formula is used to calculate the labour rate variance?
A) (actual rate × actual hours) - (standard rate × standard hours)
B) (standard rate × actual rate) - (actual rate × actual hours)
C) (actual rate × standard hours) - (standard rate × actual hours)
D) (actual rate × actual hours) - (standard rate × actual hours)

Question

Quizplus · Accepted Answer

Labour rate variance is calculated by comparing the actual rate paid to the standard rate for the actual hours worked, which is given by the formula: (actual rate × actual hours) - (standard rate × actual hours).

Which Formula Is Used to Calculate the Labour Rate Variance