If the Standard to Produce a Given Amount of Product

question 109

True/False

If the standard to produce a given amount of product is 500 direct labor hours at $15 and the actual is 600 hours at $17, the rate variance is $1,200 favorable.

---

Definitions:

Average Time

A metric that represents the mean duration taken for a specific process or activity to occur, often used in operations and project management.

Standard Time

The predetermined amount of time allocated for the completion of a specific task, under normal working conditions.

Error Level

A measure of the frequency or magnitude of mistakes, inaccuracies, or deviations from a standard within a process or system.

Confidence

The feeling or belief that one can rely on someone or something; firm trust.