Which is not a reason direct labor variances may occur?
A)Managers do not correctly anticipate changes in wage rates.
B)Poor materials are used in production.
C)Prices rise with direct materials.
D)All of the above.

Question

Quizplus · Accepted Answer

Direct labor variances specifically relate to the costs associated with labor, not the costs of materials. Therefore, rising prices with direct materials would not be a direct cause of labor variances.

Which Is Not a Reason Direct Labor Variances May Occur