Answer:
rate variance $(2,520.00)
Explanation:
[tex](standard\:rate-actual\:rate) \times actual \: hours = DL \: rate \: variance[/tex]
std rate $36.00
actual rate $36.60 (153,720/4,200)
actual hours 4,200
difference $(0.60)
rate variance $(2,520.00)
The difference between standard and actual is negative, so the variace is unfavorable.
Note for terminology:
Because the employee are giving their time for the company it is a better term to refer as rate variance.
Because the employee are not purchased like inventory.
They offer their working capacity at a given rate.
It is better to call this variance rate variance instead of price variance.
