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Which of the following statements regarding direct labor variances is not true? The direct labor efficiency variance is favorable if the actual hours worked is
Which of the following statements regarding direct labor variances is not true?
The direct labor efficiency variance is favorable if the actual hours worked is less than the standard hours allowed for the actual output.
The direct labor rate variance equals the difference between the actual hourly rate and the standard hourly rate, multiplied by the standard hours allowed for the actual output.
The sum of the direct labor rate variance plus the direct labor efficiency variance equals the difference between actual direct labor costs and the standard cost allowed for the actual output.
The direct labor rate variance is favorable if the actual hourly rate is less than the standard hourly rate.
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