Using More Direct Labor Hours for Units Produced Than the Amount

question 104

Multiple Choice

Using more direct labor hours for units produced than the amount allowed by the standard results in:

• A)An unfavorable total labor variance.
• B)An unfavorable labor efficiency variance,regardless of the wage rate paid to employees.
• C)An unfavorable labor efficiency variance only if the wage rate is higher than standard cost allowed.
• D)A favorable labor rate variance,because the hourly wage rate is automatically reduced when workers operate less efficiently.

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