If the direct labor price variance is $800 Favorable and the direct labor usage variance is $700 Unfavorable,then ________.
A) the flexible budget variance for direct labor is $100 Favorable
B) actual total wages paid were $800 more than expected
C) actual labor hours were less than expected
D) actual material prices were less than expected

Question

Quizplus · Accepted Answer

The flexible budget variance for direct labor is calculated by combining the direct labor price variance and the direct labor usage variance. Since the price variance is $800 Favorable and the usage variance is $700 Unfavorable, the net effect is $100 Favorable ($800 Favorable - $700 Unfavorable = $100 Favorable).

If the Direct Labor Price Variance Is $800 Favorable and the Direct