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Labour Rate and Material Price Variance Questions

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a) What is the total direct material price variance for November when standard price is $1.80, actual price is $1.90 and actual quantity used is 142500?

b) Calculate the total direct labor rate variance for November given that actual hours is 5000 and the actual labor rate is 7.72 whereas the standard labor rate is 8.

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Solution Summary

The expert examines labor rate and material price variance questions.

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a) the formula that I have always used is

(standard price - actual price) * actual quantity used

[Formula from: ...

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