If the standard to produce a given amount of product is 600 direct labor hours at $17 and the actual was 500 hours at $15,the time variance was $1,700 favorable.

Question

Quizplus · Accepted Answer

The time variance can be calculated as (standard hours - actual hours) x standard rate.

In this case, the standard hours are 600 and the standard rate is $17, so the standard cost is $10,200.

The actual hours are 500 and the actual rate is $15, so the actual cost is $7,500.

Therefore, the time variance is (600 - 500) x $17 = $1,700 favorable.

If the Standard to Produce a Given Amount of Product