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