Asked by
Tamanna Begum
on Nov 12, 2024
Verified
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.
Rate Variance
Refers to the difference between an actual rate and a standard or expected rate, often used in budgeting and financial analysis to understand variances in performance.
Direct Labor Hours
The total hours of labor directly involved in the manufacturing of a product, directly tied to the production process.
- Describe the meaning of variance and comprehend its importance in cost management and performance assessment.
Verified Answer
IJ
Learning Objectives
- Describe the meaning of variance and comprehend its importance in cost management and performance assessment.
Related questions
The Difference Between the Standard Cost of a Product and ...
Standard Costs Should Always Be Revised When They Differ from ...
Standards Are Designed to Evaluate Price and Quantity Variances Separately
If the Standard to Produce a Given Amount of Product ...
If the Standard to Produce a Given Amount of Product ...