Asked by
Suresh Maharjan
on Oct 10, 2024
Verified
If the actual hourly rate is greater than the standard hourly rate, the labor rate variance is labeled unfavorable (U).
Labor Rate Variance
The difference between the actual cost of labor and the expected (or standard) cost.
Actual Hourly Rate
The real wage rate paid for an hour of labor, often compared against budgeted or standard rates for cost analysis.
Standard Hourly Rate
A predetermined amount paid or charged per hour, often used to calculate labor costs in manufacturing or services.
- Pinpoint the causes behind variations in material and labor charges during production.
- Acknowledge the critical role that standards play within the realm of budgeting and variance analysis.
Verified Answer
CG
Learning Objectives
- Pinpoint the causes behind variations in material and labor charges during production.
- Acknowledge the critical role that standards play within the realm of budgeting and variance analysis.
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