Question

The following data relate to direct labor costs for the current period:

Standard costs 6,000 hours at $12.00
Actual costs 7,500 hours at $11.60


What is the direct labor rate variance?
Answer

A.$15,000 unfavorable

B.$3,000 favorable

C.$17,400 unfavorable

D.$2,400 favorable

Direct labor rate variance

(AR-SR)AH

(11.6-12)(7500)
= $ 3,000 favorable
The following data relate to direct labor costs for the current period:

standard cost36000hours $22
actual cost 35000hours $23


What is the direct labor time variance?

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