Q184
If actual payment to labour is 1200 and budgeted rate is 1000, then labour price variance would be
A.
less than zero
B.
equal to zero
C.
favourable
D.
unfavourable
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
If actual payment to labour is 1000, then labour price variance would be unfavourable. An unfavorable variance means that the cost of labor was more expensive than anticipated, while a favorable variance indicates that the cost of labor was less expensive than planned.