# Direct Labor Rate Variance Formula

Direct Labor Rate Variance Formula is also termed as direct labor rate variance. This variance measures any deviation from standard in the average hourly rate paid to direct labor workers. In other words, direct labor rate variance is the difference between the amount of actual hours worked at actual rate and actual hours worked at standard rate.Following formula is used to calculate direct labor rate variance or direct labor price variance:

[Labor rate variance = (Actual hours worked × Actual rate) − (Actual hours worked × Standard rate)]

Direct Labor Rate | Price Variance: Learning Objective of the articles: Define and explain “direct labor rate | price variance /labour rate variance” . How direct labor rate or price variance rate is calculated? What are the reasons / causes of favorable and unfavorable