Which of the following correctly lists all the information needed to calculate a
ID: 2562720 • Letter: W
Question
Which of the following correctly lists all the information needed to calculate a labor rate variance?
Actual labor rate and actual hours worked.
Actual hours worked and actual units produced
Standard labor rate and actual hours worked
Standard labor rate, actual labor rate, and actual units produced
Actual labor rate, standard labor rate and actual hours worked
A.Actual labor rate and actual hours worked.
B.Actual hours worked and actual units produced
C.Standard labor rate and actual hours worked
D.Standard labor rate, actual labor rate, and actual units produced
E.Actual labor rate, standard labor rate and actual hours worked
Explanation / Answer
Direct labour rate=(AH*AR)-(AH*SR)
AH=actual hours used
AR=actual rate per hour
SR=standard rate per hour
so it is option E