ECONOMICS

Detailed explanation-1: -Explanation: An unfavorable direct labor rate variance indicates that the actual direct labor cost per hour exceeded the standard direct labor cost per hour for Actual Quantity (AQ) of direct labor hours.

Detailed explanation-2: -Answer and Explanation: The correct answer is C. Actual labor hours worked exceeded standard labor hours for the production level achieved. This indicates that the actual labor hours worked exceeded standard labor hours for the production level achieved.

Detailed explanation-3: -An unfavorable variance is the opposite of a favorable variance where actual costs are less than standard costs. Rising costs for direct materials or inefficient operations within the production facility could be the cause of an unfavorable variance in manufacturing.

Detailed explanation-4: -Labor rate variance is calculated to determine the difference between the actual rate and standard rate, which is multiplied by the actual hours. It is a favorable variance when actual rate is less than the standard rate.

Detailed explanation-5: -If the actual price paid for materials is more than the standard price, an unfavorable materials price variance occurs. On the other hand, if the actual price paid for the materials is less than the standard price, a favorable materials price variance occurs.