A debit balance in the labor-efficiency variance account indicates that:
A) standard hours exceed actual hours.
B) actual hours exceed standard hours.
C) standard rate and standard hours exceed actual rate and actual hours.
D) actual rate and actual hours exceed standard rate and standard hours.

Question

Quizplus · Accepted Answer

A debit balance in the labor-efficiency variance account indicates that actual hours worked exceeded the standard hours allowed for the actual production level, resulting in an unfavorable variance.

A Debit Balance in the Labor-Efficiency Variance Account Indicates That