Unlike direct materials, the sum of all the direct labor variances is always equal to the flexible budget variance.

Question

Quizplus · Accepted Answer

The flexible budget variance is the difference between the actual costs and the flexible budget costs. The direct labor variances are the differences between the actual costs and the standard costs. The sum of all the direct labor variances is equal to the flexible budget variance because the standard costs are based on the flexible budget.

Unlike Direct Materials, the Sum of All the Direct Labor