The difference between the actual labor rate multiplied by the actual labor hours worked and the standard labor rate multiplied by the standard labor hours is the
A) total labor variance.
B) labor price variance.
C) labor quantity variance.
D) labor efficiency variance.

Question

Quizplus · Accepted Answer

The total labor variance encompasses both the labor price variance (the difference between the actual and standard labor rates) and the labor efficiency variance (the difference between the actual and standard labor hours worked). It measures the overall deviation of labor costs from the standard.

The Difference Between the Actual Labor Rate Multiplied by the Actual