If the wage rate paid per hour differs from the standard wage rate per hour for direct labor, the variance is a a.rate variance b.variable variance c.quantity variance d.volume variance

Respuesta :

Answer:

A. Rate Variance

Explanation:

Rate variance is simply the difference that exists between the actual price of something that is paid and the expected price which is multiplied by the actual quantity that was bought.

Mathematically, the formula is thus:

Rate Variance = (Actual price - Standard price) x Actual quantity

Where there is overpaying for goods, services or even labour, this rate variance concept is used for tracking.