There is an unfavorable labor efficiency variance when:
A)Actual hours are greater than standard hours.
B)Actual hours are less than standard hours.
C)The standard rate per hour is greater than the actual rate per hour.
D)The standard rate per hour is less than the actual rate per hour.

Question

Quizplus · Accepted Answer

An unfavorable labor efficiency variance occurs when the actual hours worked are greater than the standard hours allowed for the actual production level, indicating that more time was spent on production than was planned or budgeted.

There Is an Unfavorable Labor Efficiency Variance When