If the wage rate paid per hour differs from the standard wage rate per hour for direct labor, the variance is a _____ variance.
A)variable
B)rate
C)quantity
D)volume

Question

Quizplus · Accepted Answer

When the actual wage rate paid per hour differs from the standard or expected wage rate, the difference is referred to as a rate variance, specifically a labor rate variance in the context of direct labor costs. This variance measures the difference between what was actually paid to workers and what was expected to be paid according to standard cost accounting practices.

If the Wage Rate Paid Per Hour Differs from the Standard