Which of the Following Is True Regarding Direct Labor Variances

question 78

Multiple Choice

Which of the following is true regarding direct labor variances?

• A) The labor efficiency variance measures the difference between what was paid to direct laborers and what should have been paid.
• B) The labor rate and labor efficiency variances will always add up to the total labor variance.
• C) The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that should have been used.
• D) The labor rate variance measures the difference between the labor hours that were originally budgeted and the labor hours that should have been used.
• E) The labor rate variance measures the difference between the labor hours that were actually used and the labor hours that were originally budgeted.