If actual payment to labour is $1200 and budgeted rate is $1000, then labour price variance would be

A. less than zero

B. equal to zero

C. favourable

D. unfavourable

Answer: Option D

Solution(By Examveda Team)

If actual payment to labour is $1200 and budgeted rate is $1000, then labour price variance would be unfavourable. An unfavorable variance means that the cost of labor was more expensive than anticipated, while a favorable variance indicates that the cost of labor was less expensive than planned.