The following information describes a company's usage of direct labor in a recent period: Actual direct labor hours used 33 comma 000 Actual rate per hour $ 22.00 Standard rate per hour $ 16.75 Standard hours for units produced 32 comma 500 How much is the direct labor rate variance?

The direct labor rate variance is the difference between the actual cost of direct labor and the standard cost of direct labor used up by an entity during a given period.

When the Actual labor cost is more than the standard, we have an adverse or unfavorable variance and vice versa.

It is given as

Direct labor rate variance

= Actual hours (Actual rate - standard rate)

=33,000(22 - 16.75)

= $173,250 (Adverse or unfavorable)

The following information describes a​ company's usage of direct labor in a recent​ period: Actual direct labor hours used 33 comma 000 Actual rate per hour $ 22.00 Standard rate per hour $ 16.75 Standard hours for units produced 32 comma 500 How much is the direct labor rate​ variance?

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The following information describes a company's usage of direct labor in a recent period: Actual direct labor hours used 33 comma 000 Actual rate per hour $ 22.00 Standard rate per hour $ 16.75 Standard hours for units produced 32 comma 500 How much is the direct labor rate variance?