Item to Classify Sales volume Sales price Material usage Lab

Item to Classify Sales volume Sales price Material usage Labor price Standard 100,000 units Actual 96,000 units 4 per unit s 3.90 per unit 42,000 gallons 40,000 gallons 12.50 per hour 12.45 per hour All of the following variances are unfavorable except? Multiple Choice Sales volume Materials usage Sales price Labor price

Solution

Answer-Labor price

since the actual labor price of $12.45 is less than the standard price of $12.50 the variance will be favourable.

Answer-Labor price since the actual labor price of $12.45 is less than the standard price of $12.50 the variance will be favourable.