What does an unfavorable direct labor price variance indicate?
A) Both actual quantity and actual cost of direct labor hours exceeded standard quantity and standard cost of hours for actual output.
B) The actual direct labor cost per hour exceeded the standard direct labor cost per hour for actual output.
C) The actual cost of direct labor per hour was less than the standard cost of direct labor per hour.
D) The actual quantity of direct labor hours worked exceeded the standard quantity of hours for actual output.

Question

Quizplus · Accepted Answer

An unfavorable direct labor price variance occurs when the actual cost per hour of direct labor exceeds the standard or expected cost per hour for the actual output, indicating that labor was more expensive than planned.

What Does an Unfavorable Direct Labor Price Variance Indicate