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)what the company pays for labor but not how efficiently employees work.

Question

Quizplus · Accepted Answer

The direct labor flexible budget variance is influenced by both the actual labor rate paid compared to the standard rate (rate variance) and the efficiency with which labor is used (efficiency variance).

The Direct Labor Flexible Budget Variance Is Due to