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Given the following information for direct labor

Standard hours= 4.00

actual hours =5.00

standard wage= $12.00 per hour

Actual wage = $10.00 per hour

what is the DL wage variance?

A. $10.00 favorable

B. $10 unfavorable

C. $8.00 favorable

D. $8.00 dollars unfavorable

pur-new-sol

Computation of DL Wage Variance:

DL Wage Variance = Actual Hours * (Actual Rate - Standard Rate)

= 5 * ($10-$12)

= 5 * -$2

DL Wage Variance = -$10

So, DL Wage Variance is $10 Favorable.

So, the correct option is A "$10.00 favorable".

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