Question

The direct labor rate variance is the difference between the

a.actual costs and the actual hours at the standard rate

b.actual hours at the standard rate and the standard costs

c.actual costs and the standard costs

d.actual rate and the standard rate

The direct materials quantity variance is the difference between the

a.actual quantity at the standard price and the standard costs

b.actual costs and standard costs

c.standard quantity and the actual quantity

d.actual costs and the standard price at the standard quantity

Answer 1

Part 1)

The correct answer is

A) Actual Costs and the actual hours at the standard rate

Explanation

Direct labour rate variance is the variance on account of price of labour hour rate multiplied by actual hours. So the formula for direct labour rate variance

= actual cost - (standard rate * actual hours)

Part 2)

The correct answer is

A) actual quantity at the standard price and the standard costs

Explanation

material quantity variance is the variance on account of no. of qty used  multiplied by standard cost per qty. So the formula for direct material quantity variance

= (actual qty * standard price) - standard cost