Mathematics · Cost Accounting & Variance Analysis
The standard direct labour cost for a product is 2 hours per unit at $12 per hour. In May, when 100,000 units were produced, the company paid direct wages of $13 per hour for the 205,000 hours worked. What was the direct labour rate variance for May?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$265,000 adverse
- 2$205,000 adverse✓
- 3$205,000 favourable
- 4$200,000 adverse
Correct answer
$205,000 adverse
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