ECONOMICS

Detailed explanation-1: -If the actual direct labor cost per unit is higher than the standard direct labor cost per unit, it means that the company incurs more to produce one unit of a product than is expected, making the cost unfavorable to the business.

Detailed explanation-2: -If the actual rate per direct labor-hour exceeds the standard rate per direct labor-hour, then the journal entry to record the Labor Rate Variance would be a debit.

Detailed explanation-3: -If the actual hourly rate is greater than the standard hourly rate, the labor rate variance is labeled unfavorable. A quality standard indicates how much of an input should be used to make a unit of product or provide a unit of service.

Detailed explanation-4: -Direct labour cost variance is the difference between the standard cost for actual production and the actual cost in production. There are two kinds of labour variances. Labour Rate Variance is the difference between the standard cost and the actual cost paid for the actual number of hours.