The standard rate of pay is 20 per direct labor hour If the

The standard rate of pay is $20 per direct labor hour. If the actual direct labor payroll was $101920 for 5200 direct labor hours worked, the direct labor price (rate) variance is

Solution

Labour rate variance = Actual hours * (Actual Price-Actual Quantity) Labour rate variance = 5,200 * (($101,920/5,200) - $20) Labour rate variance = $2,080 Favourable