Which of the following will result in an unfavorable direct labor cost variance?
A) actual direct labor hours exceed standard direct labor hours
B) actual direct labor hours are less than standard direct labor hours
C) the actual direct labor cost per hour exceeds the standard direct labor cost per hour
D) the actual direct labor cost per hour is less than the standard direct labor cost per hour

Question

Quizplus · Accepted Answer

An unfavorable direct labor cost variance occurs when the actual cost of labor exceeds the standard cost of labor. Option C states that the actual direct labor cost per hour exceeds the standard direct labor cost per hour, therefore resulting in an unfavorable variance. Options A and B deal with the number of hours worked and do not take into account the cost of labor. Option D also does not deal with the cost of labor, as it only compares the actual versus standard cost per hour.

Which of the Following Will Result in an Unfavorable Direct