The ________ variance "measures how well the business keeps prices of direct labor inputs within standards."
A)direct labor production volume
B)direct labor overhead flexible budget
C)direct labor rate
D)direct labor efficiency

Question

Quizplus · Accepted Answer

The direct labor rate variance measures the difference between the actual rate paid for labor and the budgeted rate, and it is used to evaluate whether the business is able to maintain its labor costs in line with expectations. The other terms listed do not specifically relate to the management of labor costs.

The ________ Variance "Measures How Well the Business Keeps Prices