An unfavorable labor rate variance is created when:
A) actual labor hours worked exceed standard hours allowed.
B) actual hours worked are less than standard hours allowed.
C) actual wages paid are less than amounts that should have been paid.
D) actual units produced exceed budgeted production levels.
E) actual wages paid exceed amounts that should have been paid for the number of hours worked.

Question

Quizplus · Accepted Answer

An unfavorable labor rate variance occurs when the actual wages paid to workers exceed the standard or expected amount for the actual hours worked. This means the company paid more per hour than it had planned to.

An Unfavorable Labor Rate Variance Is Created When