If the actual average wage rate is $4.50 per direct labor hour, but the standard wage rate is $4.70 per direct labor hour, the direct labor
A)efficiency variance will be favorable.
B)efficiency variance will be unfavorable.
C)rate variance will be favorable.
D)rate variance will be unfavorable.

Question

Quizplus · Accepted Answer

The direct labor rate variance is favorable because the actual wage rate ($4.50) is less than the standard wage rate ($4.70), indicating that labor costs were lower than expected.

If the Actual Average Wage Rate Is $4