The labor flexible- budget variance equals the labor price variance plus the labor usage variance.

Name: The labor flexible- budget variance equals the labor price variance plus the labor usage variance.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

The labor flexible-budget variance is the difference between the actual labor costs and the flexible budget labor costs, which can be broken down into the labor price variance (difference in wage rates) and the labor usage variance (difference in hours worked).

The Labor Flexible- Budget Variance Equals the Labor Price Variance