The two components of the direct labor flexible budget variance are the direct labor
A)price variance and the direct labor quantity variance.
B)rate variance and the direct labor efficiency variance.
C)rate variance and the direct labor standard variance.
D)efficiency variance and the direct labor standard variance.

Question

Quizplus · Accepted Answer

The direct labor flexible budget variance is divided into the direct labor rate variance, which measures the difference between the actual hourly wage rate and the standard wage rate, and the direct labor efficiency variance, which measures the difference between the actual hours worked and the standard hours allowed for the actual production level.

The Two Components of the Direct Labor Flexible Budget Variance