A favourable labour rate variance leads to a
A) credit to the labour rate variance account.
B) debit to the labour rate variance account.
C) larger than standard debit to work in process.
D) None of the given answers

Question

Quizplus · Accepted Answer

A favourable labour rate variance means that the actual labour rate paid was less than the standard rate. This results in a cost savings for the company, which is credited to the labour rate variance account.

A Favourable Labour Rate Variance Leads to a