A. less than zero
B. equal to zero
C. favourable
D. unfavourable
✅ The correct answer is option D.
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.
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.