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 $1,500 unfavorable.

Question

Quizplus · Accepted Answer

The question asks for the time variance, which is calculated by multiplying the difference in actual and standard hours by the standard rate. 
Time variance = (Actual hours - Standard hours) x Standard rate
Time variance = (500 - 600) x $17 = -$1,700 (unfavorable)
Therefore, the statement provided is false.

If the Standard to Produce a Given Amount of Product