If the actual labour hours worked exceed the standard labour hours allowed, what type of variance will occur?

A) Unfavourable labour rate variance.
B) Favourable labour rate variance.
C) Unfavourable labour efficiency variance.
D) Favourable labour efficiency variance.

Labour Efficiency Variance

The difference between the budgeted or standard labor hours expected for production and the actual labor hours used.

Standard Labour Hours

The number of labor hours predetermined as necessary to complete a job or task under normal conditions.

Actual Labour Hours

The actual amount of labor time spent on a particular job or task, measured in hours.