False: A company always benefits from a favorable labor rate variance.
Why is labor rate variation advantageous?
The variance will be advantageous if the actual rate of pay per hour is lower than the standard rate of pay per hour.If the outcome is favorable, you will pay employees less than you anticipated.
How favorable or unfavorable is the direct labor rate variance?
Direct Labor Rate Variance The variance will be deemed unfavorable if it demonstrates that actual labor rates were higher than anticipated labor rates.The variance will be deemed favorable if it demonstrates that actual labor rates were lower than anticipated labor rates.
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