Which of the following will result in an unfavorable direct labor cost variance?
A)Actual direct labor hours exceed standard direct labor hours.
B)Actual direct labor hours are less than standard direct labor hours.
C)The actual direct labor cost per hour exceeds the standard direct labor cost per hour.
D)The actual direct labor cost per hour is less than the standard direct labor cost per hour.

Question

Quizplus · Accepted Answer

An unfavorable direct labor cost variance occurs when actual direct labor costs exceed standard direct labor costs. This can occur when the actual direct labor cost per hour exceeds the standard direct labor cost per hour, which is option C.

Which of the Following Will Result in an Unfavorable Direct