Let AR = Actual Hourly Rate for Direct Labor, SR

question 159

Multiple Choice

Let AR = actual hourly rate for direct labor, SR = the standard hourly rate, AH = the actual direct labor hours used, and SH = the standard direct labor hours for a given level of production. The direct labor rate variance equals

• A) SR × (AH - SH)
• B) AR × (AH - SH)
• C) AH × (AR - SR)
• D) SH × (AR - SR)

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Definitions:

Repeating Decimal

A decimal in which one or more digits repeat infinitely.

Decimal Notation

A system of writing numbers that uses a decimal point to separate the whole number part from the fractional part.

Percent Equivalent

A way of expressing a number as a fraction of 100, denoting it with the symbol "%."

Significant Figures

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