What is labor rate variance


Response to the following problem:

Using standard costing what is labor rate variance?

Actual cost of direct material purchased and used: $115,010

' Material price variance: $6,510 unfavorable

' Total materials variance: $28,510 unfavorable

' Standard cost per pound of material: $5

' Standard cost per direct labor-hour: $8

' Actual direct labor-hours: 6,320 hours

' Labor efficiency variance: $4,800 favorable

' Standard number of direct labor-hours per unit of Roff: 2 hours

' Total labor variance: $1,008 unfavorable.

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Cost Accounting: What is labor rate variance
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