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 direct labor time variance was $1,700 favorable.

Name: 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 direct labor time variance was $1,700 favorable.
Brand: Quizplus
Rating: 4.7 (37 reviews)

Question

Quizplus · Accepted Answer

Direct labor time variance = (Standard hours - Actual hours) x Standard labor rate
= (600 - 500) x $17
= 100 x $17
= $1,700 favorable.

If the Standard to Produce a Given Amount of Product