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How to calculate standard rate when you have actual rate and actual labor hours
woodyha
Oct 22, 2010, 11:31 AM
labor ravate variance = 4800 hours X (a-$8.50) = $350 favorable
rehmanvohra
Oct 23, 2010, 01:20 AM
All you have to do is solve the equation. There is a favorable rate variance, meaning the standard rate is more than the actual rate. Divide the variance by the hours and add the result to the actual rate.