4. If there was a difference between total budgeted labor costs and total actual labor costs, AND the actual hourly rate paid was more than the budgeted hourly rate, then the following must exist: {Sound confusing? Slow down, write out the variance formulas, make up an example You can get this one!}

a) Unfavorable rate [price] variance.

b) Unfavorable efficiency [quantity] variance.

c) Favorable efficiency [quantity] variance.

d) Favorable rate [price] variance.

e) Cannot say from the facts provided.