Question

The standard rate of pay is $20 per direct labor hour. If the actual direct labor payroll was $117,600 for 6,000 direct labor hours worked, the direct labor price (rate) variance is:

Answer 1

The variance is: $ 0.50 per direct labor hour.

Step-by-step explanation:

Actual payroll = $117,000/6000h = $19.50 per hour

So, if we compare this value with the standard rate of pay ($20 per direct labor hour) The variance is: $20.00 - $ 19.50 = $0.50 per hour