Formula for labour rate variance

Q.  The formula used for calculation of labour rate variance is
- Published on 14 Sep 15

a. Total standard labour cost of actual output - Total actual cost of actual output
b. (Standard rate per hour - Actual rate per hour) * Actual Hours
c. (Standard time - Actual time) * Standard rate per hour
d. Abnormal idle hours * Standard hourly rate

ANSWER: (Standard rate per hour - Actual rate per hour) * Actual Hours

Post your comment / Share knowledge


Enter the code shown above:

(Note: If you cannot read the numbers in the above image, reload the page to generate a new one.)