The Labour Rate Variance Is Calculated as

question 48

Multiple Choice

The labour rate variance is calculated as

• A)(Actual hourly wage rate - Standard hourly wage rate) * Actual direct labour hours used.
• B)(Actual hourly wage rate - Standard hourly wage rate) * Standard direct labour hours that should have been used.
• C)(Actual direct labour hours used - Standard direct labour hours that should have been used) * Actual hourly wage rate.
• D)(Actual direct labour hours used - Standard direct labour hours that should have been used) * Standard hourly wage rate.

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Definitions:

Business Activities

Various actions undertaken by a company to operate and manage its business, including operating, investing, and financing activities.

Operating

Pertains to the day-to-day activities involved in managing a business, including production, sales, and administration.

Financing

The act of providing funds for business activities, making purchases, or investing, through various means like loans, credit, or equity.

Investing

The process of distributing funds, typically financial, in anticipation of earning revenue or gains.