Asked by Jenna Hallett on May 05, 2024
Verified
If the actual direct labor hours worked is greater than the standard hours the labor quantity variance will be ___________________ and the labor rate variance will be ____________________ if the standard rate of pay is greater than the actual rate of pay.
Labor Quantity Variance
This refers to the difference between the expected amount of labor hours necessary to produce a good or service and the actual hours used, measured in financial terms.
Labor Rate Variance
The difference between the actual cost of labor and the expected (or standard) cost, used as a measure to control and optimize labor expenses.
- Evaluate and scrutinize differences in direct labor by assessing labor rate and efficiency variances.
Verified Answer
JD
Learning Objectives
- Evaluate and scrutinize differences in direct labor by assessing labor rate and efficiency variances.
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