How Is the Direct Labor Rate Variance Calculated

question 225

Multiple Choice

How is the direct labor rate variance calculated?

• A)The difference between the standard labor rate and the actual labor rate multiplied by the actual labor hours used
• B)The difference between the standard labor rate and the actual labor rate multiplied by the standard allowable hours
• C)The difference between the standard labor hours and the allowable labor hours
• D)The difference between the standard labor rate and the actual labor rate

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Definitions:

Everyday Low Pricing

A pricing strategy where companies consistently offer products at a low price rather than relying on sales or discounts.

Trade-In Allowance

The discount or amount credited to a buyer when they trade in an old item towards the purchase of a new item.

List Price

The manufacturer's suggested retail price (MSRP) of a product, before any discounts, coupons, or negotiations.