Assume when you calculated direct material price variance, you found that actual costs of direct material...
Assume when you calculated direct material price variance, you found that actual costs of direct material used is greater than the material budgeted costs based on actual units purchased and used. In this case the material price variance is:
a. Favorable
b. Unfavorable
c. Significant
d. Positive
Given:
Actual labor costs: $200.00
Flexible budget allowed for actual units used: $180.00
based on budgeted units: $189.00
Labor rate variance is:
a. $20 Favorable
b. $20 Unfavorable
c. $9 Favorable
d. $9 Unfavorable
e. $11 Favorable
f. $11 Unfavorable
Homework Answers
| 1. Option B (Unfavorable) | |
|
2. Labor rate variance = Actual Labor cost - Budgeted labor cost for actual production = 200 - 180 = 20 Unfavorable Option B |
|
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