Answer (B) is correct . The direct labor rate variance is determined by multiplying the actual hours worked by the difference between the standard and actual rates. The standard ? rate equals the direct labor efficiency variance divided by the difference between the standard and actual hours. The actual rate equals the total direct labor payroll divided by the actual hours. $3,840 ÷ (41,200 – 42,000) = $?????4.80 SR $247,200 ÷ 41,200 = 6.00 AR $????1.20 diff. ×?41,200 AH DL rate variance = $?49,440 U
Answer (A) is incorrect because The amount of $44,496 was determined using an actual rate of $5.88.
Answer (C) is incorrect because The variance is unfavorable.
Answer (D) is incorrect because Multiplying $1.20 by standard hours (42,000) results in $50,400.
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What is Pane’s direct labor rate variance?
