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An actual rate paid to labour is greater than budgeted rate, it means that the
Answer & Solution
Correct Answer:
Option
B
An actual rate paid to labour is greater than budgeted rate, it means that the variance is unfavourable, the variance is unfavorable since the company paid more than what it expected. A price variance is the difference between the actual revenue or cost and the budgeted revenue or cost because of a difference between the actual unit price and the budgeted unit price.
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