Question

If the actual labour hours worked exceed the standard labour hours allowed, what type of variance...

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

Multiple Choice

  • Favourable labour efficiency variance.

  • Favourable labour rate variance.

  • Unfavourable labour efficiency variance.

  • Unfavourable labour rate variance.

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Answer #1
Option C is the answer

Labor efficiency variance will be Unfavorable when the actual hours exceed what is allowed for actual production

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Answer #2
Unfavourable labour usage
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