If the labor efficiency variance is $1,000unfavorable, then:
A)Budgeted labor rate exceeded actual labor rate.
B)Actual labor rate exceeded budgeted labor rate.
C)Budgeted labor input exceeded actual labor input.
D)Actual labor input exceeded budgeted labor input.
E)None of the above.

Question

Quizplus · Accepted Answer

An unfavorable labor efficiency variance occurs when the actual labor input (hours worked, for example) exceeds the budgeted or standard labor input required to produce a certain amount of goods. This means more labor was used than planned, leading to higher costs.

If the Labor Efficiency Variance Is $1,000unfavorable, Then