Homework SourseThe following information describes a companys usage of dire
The following information describes a company\'s usage of direct labor in a recent period.
Actual direct labor hours used
34,000
Actual rate per hour
$17.00
Standard rate per hour
$16.75
Standard hours for units produced
33,500
How much is the direct labor rate variance?
| Actual direct labor hours used | 34,000 |
| Actual rate per hour | $17.00 |
| Standard rate per hour | $16.75 |
| Standard hours for units produced | 33,500 |
Solution
Direct Labor Rate Variance:
= Actual Quantity x Actual Rate - Actual Quantity x Standard Rate
= Actual cost - Standered cost of Actual Hours
= 34000*17 - 34*16.75
=578000-569500
=8500U
