If the direct?labor price variance is $800 favorable, and the direct?labor usage variance is $700 unfavorable, then _____ must be true.
A)the total direct?labor flexible?budget variance is $100 favorable
B)actual total wages paid were $800 less than expected
C)actual labor used was more than planned
D)all of these answers are correct

Question

Quizplus · Accepted Answer

The direct labor price variance being $800 favorable means that the actual wages paid were less than expected, which supports option B. The direct labor usage variance being $700 unfavorable indicates that more labor was used than planned, supporting option C. Combining both variances gives a net effect of a $100 favorable variance ($800 favorable - $700 unfavorable), which aligns with option A. Therefore, all statements are correct, making option D the correct choice.

If the Direct?labor Price Variance Is $800 Favorable, and the Direct?labor