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Which of the following is the correct mathematical representation of direct labor rate variance (LRV)?
A.Direct labor rate variance = (Actual hourly wage rate − Standard hourly wage rate) × Actual direct labor hours used
B.Direct labor rate variance = (Standard direct labor hours allowed − Actual direct labor hours used) × Standard hourly wage rate
C.Direct labor rate variance = Actual hourly wage rate − Standard hourly wage rate
D.Direct labor rate variance = Standard direct labor hours allowed − Actual direct labor hours used

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Favourazukaego

Answer: not in any option

Explanation: Labour rate variance = (standard Labour hour - actual Labour hour) × actual Labour hour.

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