The direct labor flexible budget variance is due to
A)What the company pays for labor and how efficiently employees work.
B)What the company pays for labor and how management allocates the labor rate.
C)How efficiently employees work and how management allocates the workers to products.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

The direct labor flexible budget variance is the difference between the actual hours worked by employees and the hours that were budgeted for those employees at the standard wage rate. This difference is primarily due to how efficiently employees work and how much the company pays for labor. Therefore, option A is the correct choice. Option B is incorrect because management allocation of labor rate affects the direct labor rate variance, not the flexible budget variance. Option C is incorrect because how management allocates workers to products affects the direct labor efficiency variance, not the flexible budget variance. Option D is incorrect because there is a correct answer.

The Direct Labor Flexible Budget Variance Is Due to