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Direct Labor Actual cost Standard cost Direct labor cost variance favorable Producing 400 Units Quantity 1.25 hrs. X 400 units = 500 hrs. 1.50 X

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Direct Labor Actual cost Standard cost Direct labor cost variance favorable Producing 400 Units Quantity 1.25 hrs. X 400 units = 500 hrs. 1.50 X 400 units 600 hrs. Rate per Hour $8.50 per hr. $8.00 per hr. Cost 54.250.00 4.800.00 $ 550.00 Rate Variance (Actual Ra n dard Rate) x Actual Hours $250 Unfavorable = ($8.50 - $8.00) x 500 hours Efficiency Variance - (Actual Hours - Standard Hours) x Standard Rate $800 Favorable (500 hrs. - 600 hrs.) x $8.00 per hour Knowledge Check 01 in producing jelly beans, 1,000 hours of direct labor were used at a rate of $12 per hour. The standard was 1100 at $1225 per hour. What is the direct labor rate variance? $250 Unfavorable $275 Favorable $250 Favorable $275 Unfavorable

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