Answer:
Direct labor rate variance= $69,579 unfavorable
Explanation:
Giving the following information:
Standard labor-hours per unit of output 9.0 hours
Standard labor rate= $15.10 per hour
Actual hours worked= 8,100 hours
Actual total labor cost= $191,880
To calculate the direct labor rate variance, we need to use the following formula:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 191,880/8,100= $23.69 per hour
Direct labor rate variance= (15.10 - 23.69)*8,100
Direct labor rate variance= $69,579 unfavorable
