Asked by Anthony Amaya on May 27, 2024
Verified
If the wage rate paid per hour differs from the standard wage rate per hour for direct labor, the variance is a _____ variance.
A) variable
B) rate
C) quantity
D) volume
Wage Rate
Wage rate refers to the standardized amount of compensation paid to employees for their labor, either per hour, day, or piece.
Standard Wage Rate
A predetermined rate of pay for a particular job or task, often used in budgeting and cost control to standardize labor costs.
Direct Labor
Direct labor refers to the work done by employees that is directly involved in the production of goods or the provision of services.
- Understand the concept and calculation of direct labor variances, including rate and time variances.
Verified Answer
Learning Objectives
- Understand the concept and calculation of direct labor variances, including rate and time variances.
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