If the actual rate per direct labor-hour is less than the standard rate per direct labor-hour, then the journal entry to record the Labor rate variance would be a credit.

Name: If the actual rate per direct labor-hour is less than the standard rate per direct labor-hour, then the journal entry to record the Labor rate variance would be a credit.
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A credit entry is made to record a favorable variance, which occurs when the actual rate paid for labor is less than the standard rate.

If the Actual Rate Per Direct Labor-Hour Is Less Than