Paid Rs 31,200 for 1,200 hours; std wage Rs 25 an hour. Rate variance in Rs?
A1,200 adverse
B1,200 favourable
C31,200 adverse
D2,400 adverse
Answer & Solution
Correct answer: A. 1,200 adverse
Standard pay for 1,200 hours is Rs 30,000; the Rs 1,200 excess paid is adverse.
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