The formula to compute direct labor rate variance is to calculate the difference between
A) actual costs + (actual hours * standard rate)
B) actual costs - standard cost
C) (actual hours * standard rate) - standard costs
D) actual costs - (actual hours * standard rate)

Question

Quizplus · Accepted Answer

The formula to calculate direct labor rate variance is to subtract the total cost of actual hours worked multiplied by the standard rate from the actual cost of direct labor. This is represented by the formula: 
Direct Labor Rate Variance = Actual Costs - (Actual Hours x Standard Rate) 
Therefore, option D is the correct choice.

The Formula to Compute Direct Labor Rate Variance Is to Calculate