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

Name: If the standard to produce a given amount of product is 600 direct labor hours at $17 and the actual is 500 hours at $15, the time variance is $1,500 unfavorable.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The time variance is calculated as (Standard Hours - Actual Hours) x Standard Rate. In this case, it would be (600 - 500) x $17 = $1,700 favorable, not $1,500 unfavorable.

If the Standard to Produce a Given Amount of Product