A direct labor rate variance would occur in which of the following situations?
A) When a production employee takes an unplanned break
B) When a production employee spends more time producing one product than was expected
C) When a low-paid production employee performs a task higher than his or her assigned level
D) When a production employee incurs overtime hours at the same hourly rate as regular pay

Question

Quizplus · Accepted Answer

A direct labor rate variance occurs when the actual hourly wage rate differs from the standard rate. In option C, a low-paid employee performing a higher-level task may result in a wage rate different from the standard, causing a variance.

A Direct Labor Rate Variance Would Occur in Which of the Following