Which of the following statements is correct?
A) A favorable direct labor price variance implies that the actual total cost of direct labor was less than the standard cost of direct labor.
B) An unfavorable direct material price variance implies that the actual total cost of direct materials was greater than the standard cost of direct materials.
C) An unfavorable direct labor efficiency variance implies that the actual direct labor hours were less than the standard direct labor hours.
D) A favorable direct material price variance implies that the actual unit cost of direct materials was less than the standard unit cost of direct materials.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is correct?
A) A favorable direct labor price variance implies that the actual total cost of direct labor was less than the standard cost of direct labor.
B) An unfavorable direct material price variance implies that the actual total cost of direct materials was greater than the standard cost of direct materials.
C) An unfavorable direct labor efficiency variance implies that the actual direct labor hours were less than the standard direct labor hours.
D) A favorable direct material price variance implies that the actual unit cost of direct materials was less than the standard unit cost of direct materials.

Which of the Following Statements Is Correct