The calculation of the labor rate variance is:
A)Standard Rate × (Standard Hours − Actual Hours).
B)Standard Hours × (Standard Rate − Actual Rate).
C)Actual Hours × (Standard Rate − Actual Rate).
D)Actual Rate × (Standard Hours − Actual Hours).

Question

Quizplus · Accepted Answer

The labor rate variance is calculated by taking the difference between the standard rate and the actual rate, and then multiplying that difference by the actual hours worked. This measures how much the actual labor rate deviates from the standard or expected labor rate.

The Calculation of the Labor Rate Variance Is