The difference between the actual cost and the standard cost for direct labor is called: A....
Question:
The difference between the actual cost and the standard cost for direct labor is called:
A. Direct Labor Rate Variance
B. Direct Labor Efficiency Variance
C. Direct Labor Split Variance
D. Direct Labor Flexible Budget Variance
E. None of the above
Variances:
Variance is computed to show the deviation of actual data from the standard data. Variances may be positive or negative. The positive variance shows favorable conditions, and the negative variance shows unfavorable conditions.
Answer and Explanation: 1
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View this answerCorrect option: Option A
Explanation:
Direct labor rate variation means the difference between the standard direct labor cost and the actual direct...
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Calculating Direct Materials & Direct Labor Variances
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Chapter 11 / Lesson 3
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Learn how to calculate variances with direct materials and direct labor. Variances are changes to the costs an organization has budgeted, they can be either favorable or unfavorable.
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