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27 October, 17:48

The standard rate of pay is $20 per direct labor hour. If the actual direct labor payroll was $117,600 for 6,000 direct labor hours worked, the direct labor price (rate) variance is:

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  1. 27 October, 18:13
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    The variance is: $ 0.50 per direct labor hour.

    Explanation:

    Actual payroll = $117,000/6000h = $19.50 per hour

    So, if we compare this value with the standard rate of pay ($20 per direct labor hour) The variance is: $20.00 - $ 19.50 = $0.50 per hour
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