Standard and actual costs for direct labor for the manufacture of 300 units of product were as follows:
Actual costs
125 hours at $54
Standard costs
131 hours at $53
Determine the direct labor (a) time variance, (b) rate variance, and (c) total cost variance.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or budgeted) cost, based on standard rates and actual hours worked.

Actual Costs

The real financial expenditures that a company incurs, as opposed to budgeted or estimated costs.