Asked by Dolly Rodriguez on May 19, 2024
Verified
(Actual Direct Hours - Standard Direct Hours) × Standard Rate per Hour
A) Direct materials price variance
B) Direct labor rate variance
C) Direct labor time variance
D) Direct materials quantity variance
E) Budgeted variable factory overhead
Direct Labor Time Variance
The difference between the actual time taken to produce a good or service and the estimated time.
Standard Rate
A predetermined charge or cost that applies to a specific service, transaction, or product under typical conditions.
Standard Direct Hours
Standard direct hours represent the estimated amount of time that should be spent by labor to produce a unit of output under normal conditions.
- Understand how to calculate variances related to direct materials, direct labor, and factory overhead.
Verified Answer
JF
Jordan FitzmauriceMay 21, 2024
Final Answer :
C
Explanation :
This formula calculates the direct labor time variance, which measures the difference between the actual time worked and the standard time allowed for the units produced, multiplied by the standard rate per hour.
Learning Objectives
- Understand how to calculate variances related to direct materials, direct labor, and factory overhead.