What does an unfavorable direct labor price variance indicate?

Question

Quizplus · Accepted Answer

An unfavorable direct labor price variance indicates that the actual direct labor cost per hour exceeded the standard direct labor cost per hour for the actual quantity of direct labor hours. In other words, the company paid more than it should have for the labor that was performed. Option A describes an unfavorable direct labor rate variance, where both the actual quantity and cost of direct labor hours exceeded the standards. Option B describes an unfavorable direct labor efficiency variance, where the actual quantity of direct labor hours worked exceeded the standard quantity. Option C describes a favorable direct labor price variance, where the actual cost of direct labor per hour was less than the standard cost of direct labor per hour.

What Does an Unfavorable Direct Labor Price Variance Indicate