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8 March, 17:15

Production used 2.5 labor hours per finished unit, and the company actually paid $21 per hour, totaling $52.50 per unit of finished product. What amount is the company's direct labor rate variance for March?

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  1. 8 March, 18:23
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    Direct labor rate variance = (Standard Rate - Actual Rate) * Actual hours

    Explanation:

    Giving the following information:

    The production used 2.5 labor hours per finished unit, and the company paid $21 per hour, totaling $52.50 per unit of finished product.

    We weren't provided with enough information to solve the problem. We need estimated production hours and rates. But, I can leave the formula to solve it.

    To calculate direct labor rate variance, we need to use the following formula:

    Direct labor rate variance = (Standard Rate - Actual Rate) * Actual Hours
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