Actual direct labor costs may differ from the flexible budget amounts because
A)The company may set a standard wage rate,but the market forces may require a change in that rate.
B)Employees do not always operate at the desired efficiency level.
C)The company may set a standard wage rate,but the market forces may require a change in that rate or employees do not always operate at the desired efficiency level.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

Actual direct labor costs may differ from the flexible budget amounts because either the company may set a standard wage rate, but the market forces may require a change in that rate, or employees do not always operate at the desired efficiency level. Both of these factors can lead to deviations from the budgeted amounts for labor costs.

Actual Direct Labor Costs May Differ from the Flexible Budget