Given the following information, calculate the direct labour rate variance.<\/p>\n\n\n\n
Actual direct labour hours<\/p>\n\n\n\n
34 500<\/p>\n\n\n\n
Standard direct labour hours<\/p>\n\n\n\n
35 000<\/p>\n\n\n\n
Actual direct labour rate<\/p>\n\n\n\n
$ 6.65<\/p>\n\n\n\n
Direct labour efficiency variance (F)<\/p>\n\n\n\n
$ 3 200<\/p>\n\n\n\n
****Enter a negative number if you have a Favourable variance and a positive number if you have an Unfavourable variance.<\/p>\n\n\n\n
The correct answer and explanation is:<\/mark><\/strong><\/p>\n\n\n\n To calculate the Direct Labour Rate Variance<\/strong>, use the formula: Direct Labour Rate Variance=(Actual Rate\u2212Standard Rate)\u00d7Actual Hours Worked\\text{Direct Labour Rate Variance} = (\\text{Actual Rate} – \\text{Standard Rate}) \\times \\text{Actual Hours Worked}<\/p>\n\n\n\n Efficiency Variance=(Standard Hours for Actual Output\u2212Actual Hours)\u00d7Standard Rate\\text{Efficiency Variance} = (\\text{Standard Hours for Actual Output} – \\text{Actual Hours}) \\times \\text{Standard Rate}<\/p>\n\n\n\n From the Direct Labour Efficiency Variance formula: 3,200=(35,000\u221234,500)\u00d7Standard Rate3,200 = (35,000 – 34,500) \\times \\text{Standard Rate} 3,200=500\u00d7Standard Rate3,200 = 500 \\times \\text{Standard Rate} Standard Rate=3,200500=6.40\\text{Standard Rate} = \\frac{3,200}{500} = 6.40<\/p>\n\n\n\n Using the Direct Labour Rate Variance formula: Direct Labour Rate Variance=(Actual Rate\u2212Standard Rate)\u00d7Actual Hours Worked\\text{Direct Labour Rate Variance} = (\\text{Actual Rate} – \\text{Standard Rate}) \\times \\text{Actual Hours Worked} Direct Labour Rate Variance=(6.65\u22126.40)\u00d734,500\\text{Direct Labour Rate Variance} = (6.65 – 6.40) \\times 34,500 Direct Labour Rate Variance=0.25\u00d734,500=8,625\\text{Direct Labour Rate Variance} = 0.25 \\times 34,500 = 8,625<\/p>\n\n\n\n Direct Labour Rate Variance = $8,625 (Unfavourable)<\/strong><\/p>\n\n\n\n The Direct Labour Rate Variance quantifies the cost impact of the difference between the actual and standard labour rates, multiplied by the actual hours worked. Here, the actual labour rate ($6.65) was higher than the standard labour rate ($6.40), resulting in an unfavourable variance. This variance indicates higher costs due to a higher actual hourly rate than anticipated.<\/p>\n","protected":false},"excerpt":{"rendered":" Given the following information, calculate the direct labour rate variance. Actual direct labour hours 34 500 Standard direct labour hours 35 000 Actual direct labour rate $ 6.65 Direct labour efficiency variance (F) $ 3 200 ****Enter a negative number if you have a Favourable variance and a positive number if you have an Unfavourable […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-184875","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/184875","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=184875"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/184875\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=184875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=184875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=184875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Given Data:<\/h3>\n\n\n\n
\n
Step 1: Find the Standard Direct Labour Rate<\/h4>\n\n\n\n
Step 2: Calculate the Direct Labour Rate Variance<\/h4>\n\n\n\n
Final Answer:<\/h3>\n\n\n\n
Explanation:<\/h3>\n\n\n\n