A favorable labor rate variance might be explained by an unexpected increase in available employees that caused lower wage rates than were anticipated.

Question

Quizplus · Accepted Answer

A favorable labor rate variance occurs when the actual wage rate paid is lower than the standard or budgeted wage rate. This could be due to various factors such as an increase in available employees in the market leading to a decrease in wage rates, or if the company negotiated better pay rates with the employees. Therefore, Option A is correct.

A Favorable Labor Rate Variance Might Be Explained by an Unexpected