If the Actual Labour Rate Exceeds the Standard Labour Rate $\underline{\text { Labour Rate Variance }} \quad \underline{\text { Labour Efficiency Variance }}$

question 77

Short Answer

If the actual labour rate exceeds the standard labour rate and the actual labour hours exceed the number of hours allowed,what will be the labour rate variance and labour efficiency variance?
$\underline{\text { Labour Rate Variance }} \quad \underline{\text { Labour Efficiency Variance }}$
A) $\begin{array}{lll}&\text { Favourable } &&&&& \text { Favourable } \\\end{array}$
B) $\begin{array}{lll}&\text { Favourable } &&&&& \text { Unfavourable } \\\end{array}$
C) $\begin{array}{lll}&\text { Unfavourable } &&&& \text { Favourable } \\\end{array}$
D) $\begin{array}{lll} &\text { Unfavourable } &&&& \text { Unfavourable }\end{array}$

• A)\(\begin{array}{lll}
• &\text { Favourable } &&&&& \text { Favourable } \\\end{array}\)
• B)\(\begin{array}{lll}&\text { Favourable } &&&&& \text { Unfavourable } \\\end{array}\)
• C)\(\begin{array}{lll}&\text { Unfavourable } &&&& \text { Favourable } \\\end{array}\)
• D)\(\begin{array}{lll} &\text { Unfavourable } &&&& \text { Unfavourable }
• \end{array}\)