Which of the following would lead to a labour usage variance?
A) More materials have been used than standard
B) More labour hours have been worked than standard
C) The price of materials was higher than standard
D) Direct labour rate was higher than standard

Question

Quizplus · Accepted Answer

Labour usage variance measures the difference between the actual number of labour hours used and the standard number of labour hours expected. Therefore, if more labour hours are worked than standard, it would cause a labour usage variance. A, C, and D would result in material usage variances, material price variances, and labour rate variances, respectively.

Which of the Following Would Lead to a Labour Usage