The Labour Rate Variance Is Calculated as

question 52

Multiple Choice

The labour rate variance is calculated as

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

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