Asked by Tiber Septims on Jul 22, 2024
Verified
If the standard to produce a given amount of product is 600 direct labor hours at $15 and the actual direct labor incurred is 600 hours at $17, the direct labor rate variance is $1,200 unfavorable.
Direct Labor Rate Variance
The difference between the expected cost of direct labor per unit of production and the actual cost incurred.
Direct Labor
Direct labor refers to the wages and other costs for employees who are directly involved in the production of goods or services.
- Recognize the variations between distinct types of variances, encompassing direct labor time variance, direct labor rate variance, and direct materials quantity variance.
- Appreciate the calculation methods and interpretations for favorable and unfavorable variances.
Verified Answer
TZ
Trillest ZariTvJul 22, 2024
Final Answer :
True
Explanation :
The direct labor rate variance is calculated as (Actual Rate - Standard Rate) x Actual Hours = ($17 - $15) x 600 = $2 x 600 = $1,200 unfavorable.
Learning Objectives
- Recognize the variations between distinct types of variances, encompassing direct labor time variance, direct labor rate variance, and direct materials quantity variance.
- Appreciate the calculation methods and interpretations for favorable and unfavorable variances.
Related questions
Although Favorable Fixed Factory Overhead Volume Variances Are Usually Good ...
A Favorable Cost Variance Occurs When the Actual Cost Is ...
Subtracting Actual Revenues from Planned Revenues Provides the Revenue Price ...
Mirabito Incorporated Has Provided the Following Data Concerning One of ...
The Standards for Product V28 Call for 7 ...