A direct labor rate variance would occur in which of the following?
A)When a production employee takes an unplanned break
B)When a production employee spends more time producing one product than was expected
C)When a low-paid production employee performs a task higher than his or her assigned level
D)When a production employee incurs overtime hours at the same hourly rate as regular pay

Question

Quizplus · Accepted Answer

A direct labor rate variance occurs when the actual hourly wage rate differs from the standard wage rate. In option C, a low-paid employee performing a higher-level task may result in a wage rate different from the standard, causing a variance.

A Direct Labor Rate Variance Would Occur in Which of the Following