Question

If the actual payment to labor is $1200 and the budgeted rate is $1000, then the labor price variance would be

a.

less than zero

b.

equal to zero

c.

favorable

d.

unfavorable

Answer: (d).unfavorable

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Q. If the actual payment to labor is $1200 and the budgeted rate is $1000, then the labor price variance would be

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