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Given the following information for direct labor Standard hours= 4
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
Expert Solution
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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