The direct labor rate variance arises when
A)actual wage rates differ from the standard wage rate.
B)actual hours worked differ from budgeted hours.
C)standard wage rates do not match last year's rates.
D)last year's actual hours worked do not match this year's hours worked.

Question

Quizplus · Accepted Answer

The direct labor rate variance is the difference between the actual wage rate paid to workers and the standard wage rate that was set for the production process. This variance arises when actual wage rates differ from the standard wage rate.

The Direct Labor Rate Variance Arises When