If the direct labor price variance is $800 Favorable and the direct labor usage variance is $700 Unfavorable,then ________.
A)the direct labor flexible budget variance is $100 Favorable
B)actual total wages paid were $800 more than expected
C)actual labor hours were less than expected
D)actual material prices were less than expected

Question

Quizplus · Accepted Answer

Direct labor flexible budget variance = Direct labor price variance + Direct labor usage variance
= $800 F + ($700 U) = $100 F. Therefore, Option A is correct. Option B cannot be correct as it contradicts with the direct labor price variance being favorable. Option C cannot be correct as the direct labor usage variance is unfavorable, indicating that more labor hours were used than expected. Option D is unrelated to the given information.

If the Direct Labor Price Variance Is $800 Favorable and the Direct