If the direct- labor price variance is $900 favorable, and the direct- labor usage variance is $800 unfavorable, then must be true.
A) actual labor used was more than planned
B) the total direct- labor flexible- budget variance is $100 favorable
C) actual total wages paid were $900 less than expected
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

The direct-labor price variance is favorable, which means that the actual labor rate was lower than the planned rate. The direct-labor usage variance is unfavorable, which means that the actual labor hours used were more than the planned hours. Therefore, the actual total wages paid must have been $900 less than expected, and the total direct-labor flexible-budget variance must be $100 favorable.

If the Direct- Labor Price Variance Is $900 Favorable, and the Direct-