Q. The organization budgeted 400,000 for 40,000 hours of direct labour to complete 16,000 units offinished product. The firm used 42,000 direct-labour hours and completed 17,000 units of finished product. What is the direct-labour rate variance? (Solved)
1. 20,000 unfavourable
2. 25,000 favourable
3. 25,000 unfavourable
4. Cannot be determined from the information provided
- c. 25,000 unfavourable