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

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

Quizplus · Accepted Answer

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

If the Standard to Produce a Given Amount of Product