If the actual labour hours worked exceed the standard labour hours allowed,what type of variance will occur?
A) Favourable labour efficiency variance.
B) Favourable labour rate variance.
C) Unfavourable labour efficiency variance.
D) Unfavourable labour rate variance.

Question

Quizplus · Accepted Answer

If the actual labour hours worked exceed the standard labour hours allowed, it means that more labour hours were used than expected, resulting in higher labour costs. This will lead to an unfavourable labour efficiency variance.

If the Actual Labour Hours Worked Exceed the Standard Labour