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Direct Labor Rate Variance (DLRV)

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The Alperti Company manufactures surgical gowns for hospitals. Their controller, Ethell Hieken is preparing the variance analysis report for October. Standard Costs are as follows:

Direct Material 2.0 yards at $6 per yard
Direct Labor 0.25 hours at $12 per hour

During October, Ms Hieken's report shows:
100,000 gowns produced
175,000 yards of fabric purchased at a cost of $1,137,500
185,000 yards of fabric used
Employees worked 24,000 hours at a cost of $276,000

What is the direct labor rate variance?

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The solution computes the Direct Labor Rate Variance.

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