Answer:
Direct labor rate variance= $26,100 unfavorable
Explanation:
<u>To calculate the direct labor rate variance, we need to use the following formula:</u>
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 269,700/34,800= $7.75
<u>First, we need to calculate the standard rate:</u>
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
5,600 = (35,600 - 34,800)*standard rate
5,600/800= standard rate
$7= standard rate
<u>Now, the direct labor rate variance:</u>
<u></u>
Direct labor rate variance= (7 - 7.75)*34,800
Direct labor rate variance= $26,100 unfavorable
