Question

Direct labor variances ______. Multiple choice question. can only be computed for differences in pay rates are computed in the same way as material variances are generally the responsibility of the human resources manager are broken into two components (price and usage)

Answer 1

The direct labor variances are computed in the same way as the material variances.

In accounting, a direct labor variance means the difference between Standard cost for actual production and Actual cost in production.

• Also, the material variances means the difference between the Standard cost and Actual cost of material purchased.

Hence, the Direct labor variances are computed in the same way as the material variances.

Therefore, the correct option is B.

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