COST ACCOUNTING
STANDARD COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An unfavourable labour efficiency variance indicates that
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the actual labour rate was higher than the standard labour rate per direct labour hours
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overtime labour was utilised during this period
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the actual direct labour hours exceeded standard direct labour hours for the production
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the total labour variable must be unfavourable
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Explanation:
Detailed explanation-1: -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-2: -An unfavorable variance means that labor efficiency has worsened, and a favorable variance means that labor efficiency has increased.
Detailed explanation-3: -C. If the actual labor hours worked exceeded standard hours allowed is expressed as unfavorable labor efficiency variance.
There is 1 question to complete.