Compute the direct labor rate variance given actual cost $374,400 for 36,000 hours and a standard rate of $10 per hour.

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Multiple Choice

Compute the direct labor rate variance given actual cost $374,400 for 36,000 hours and a standard rate of $10 per hour.

Direct labor rate variance shows whether you paid more or less per hour than planned for the hours worked. Here, actual cost is 374,400 for 36,000 hours, so the actual rate is 374,400 ÷ 36,000 = 10.40 per hour. The standard rate is 10.00 per hour, so the difference is 0.40 per hour unfavorable. Multiply by the actual hours: 0.40 × 36,000 = 14,400 unfavorable. So, the direct labor rate variance is 14,400 U.

Compute the direct labor rate variance given actual cost $374,400 for 36,000 hours and a standard rate of $10 per hour.

Prepare for the Accounting SmartBook Test. Practice with tailored questions and helpful hints. Analyze comprehensive explanations for a deep understanding. Ace your exam with confidence!

Compute the direct labor rate variance given actual cost $374,400 for 36,000 hours and a standard rate of $10 per hour.

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