alleryStart learning →Direct labor may show a variance in the amount of time used or in the:
ANumber of shifts run
BColour of the uniform
CLocation of the plant
DRate paid to workers
Answer & Solution
Correct answer: D. Rate paid to workers
1. Labour variances split the same two ways as materials.
2. Direct materials vary by price and by quantity.
3. Direct labor may have a variance in the rate paid to workers.
4. It may also vary in the amount of time used to make a product.
_Source: OpenStax Principles of Accounting, Volume 2: Managerial Accounting (CC BY-NC-SA 4.0), Ch 8 'Standard Costs and Variances'_
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Related questions
Complete the variance rulesMatch each variance termStack the variance termsSort the variancesPull the rope to favorable or notSpending exactly the standard amount on materials produces a variance of:A standard cost is described as being developed in order to:Paying workers less per hour than the standard rate produces which variance?