Question

If the wage rate paid per hour differs from the standard wage rate per hour for direct labor, the variance is a a.rate variance b.variable variance c.quantity variance d.volume variance

Answer 1

Answer:

a.rate variance

Explanation:

The labor rate variance arises when the rate is paid for the labor is different as compared with the standard rate

Also the variance could be favorable or unfavorable that based whether it is below the standard rate or higher standard rate as compared with the actual rate

hence, in the given situation, the correct answer is a. rate variance