If the standard to produce a given amount of product is 600 direct labour hours at £15 and the actual is 600 hours at £17, the rate variance would be: a) £1,200 unfavourable b) £1,200 favourable c) £1,500 unfavourable d) £1,500 favourable

If the standard to produce a given amount of product is 600 direct labour hours at £15 and the actual is 600 hours at £17, the rate variance would be: a) £1,200 unfavourable b) £1,200 favourable c) £1,500 unfavourable d) £1,500 favourable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

If the standard to produce a given amount of product is 600 direct labour hours at £15 and the actual is 600 hours at £17, the rate variance would be:

a) £1,200 unfavourable
b) £1,200 favourable
c) £1,500 unfavourable
d) £1,500 favourable

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