Asked by
Quinn Lendyll Teope
on Oct 10, 2024
Verified
A favorable labor rate variance indicates that
A) actual hours exceed standard hours.
B) standard hours exceed actual hours.
C) the actual rate exceeds the standard rate.
D) the standard rate exceeds the actual rate.
Labor Rate Variance
The difference between the actual cost of direct labor and its expected (or standard) cost during a given period.
Standard Rate
A predetermined cost per unit of measure or rate that is used in budgeting and costing calculations.
Actual Rate
The real, observed rate at which something occurs, often used in financial contexts to specify interest rates or exchange rates.
- Analyze and interpret differences in costs linked to materials, labor, and overhead expenses.
- Examine the consequences of differences in labor rate and efficiency on the costs of production.
Verified Answer
KE
Learning Objectives
- Analyze and interpret differences in costs linked to materials, labor, and overhead expenses.
- Examine the consequences of differences in labor rate and efficiency on the costs of production.
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