Question

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual direct labor incurred $600 at $17 direct labor rate variance is $1200 favorable

Answer 1

Answer:

False

Explanation:

Missing word "True or False"

Labor rate variance = Actual hours*Actual rate - Actual hours*Standard rate

Labor rate variance = 600*$17 - 600*$15

Labor rate variance = 10200 - 9000

Labor rate variance = 1200 (Unfavorable)

So, the above solution 1,200 favorable is false