A favorable price variance for direct manufacturing labor might indicate that:
A)employees were paid more than planned
B)budgeted price standards are too tight
C)underskilled employees are being hired
D)an efficient labor force

Question

Quizplus · Accepted Answer

A favorable price variance for direct manufacturing labor indicates that the actual labor costs were less than the budgeted costs, which could be due to hiring underskilled employees who are paid less.

A Favorable Price Variance for Direct Manufacturing Labor Might Indicate