Asked by Kamia Bryan on May 05, 2024
Verified
Calculate the direct labor rate variance.
A) $4,488.75 unfavorable
B) $6,851.25 favorable
C) $4,488.75 favorable
D) $6,851.25 unfavorable
Direct Labor Rate Variance
The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard rate and actual hours worked.
- Execute and decipher calculations related to direct labor's rate and time variances.
Verified Answer
FK
Ferbis KamalaMay 12, 2024
Final Answer :
A
Explanation :
The direct labor rate variance is calculated as the difference between the actual labor cost and the standard labor cost for the actual hours worked. If the actual cost is higher than the standard cost, the variance is unfavorable. Without specific numbers provided for the calculation, the correct answer cannot be determined through calculation. However, based on the options given, if we assume the question implies that the variance is unfavorable, then the correct choice would be "A) $4,488.75 unfavorable" as it is the only option that specifies an unfavorable variance with that specific amount.
Learning Objectives
- Execute and decipher calculations related to direct labor's rate and time variances.
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