A production scheduling error at Vanadium Alloy and Steel Company required two days of overtime to complete an order. This error will most likely be reflected in an unfavorable labor rate variance.

Question

Quizplus · Accepted Answer

An unfavorable labor rate variance occurs when the actual labor rate paid is higher than the standard labor rate. In this case, the overtime pay will result in a higher actual labor rate, leading to an unfavorable labor rate variance.

A Production Scheduling Error at Vanadium Alloy and Steel Company