Answer:
(a) rate variance = $ 5,234, Adverse
(b) time variance = $ 6,360, Favourable
(c) total cost variance = $1,126, Favourable
Explanation:
(a) rate variance,
rate variance = (Standard Rate - Actual Rate) × Actual Hours
=( $12.00- $12.20) × 26,170 hours
= $ 5,234, Adverse
(b) time variance, and
time variance = (Standard Hours - Actual Hours) × Standard Rate
= (26,700 hours - 26,170 hours) × $12.00
= $ 6,360, Favourable
(c) total cost variance
total cost variance = rate variance + time variance
= $ 5,234, Adverse + $ 6,360, Favourable
= $1,126, Favourable
