If the standard to produce a given amount of product is 600 direct labor hours at $15 and the actual is 600 hours at $17, the rate variance is $1,200 unfavorable.

Name: If the standard to produce a given amount of product is 600 direct labor hours at $15 and the actual is 600 hours at $17, the rate variance is $1,200 unfavorable.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

The rate variance is calculated as (Actual Rate - Standard Rate) x Actual Hours = ($17 - $15) x 600 = $2 x 600 = $1,200 unfavorable.

If the Standard to Produce a Given Amount of Product