Question

If the actual labor rate exceeds the standard labor rate and if the actual labor-hours exceed the number of hours allowed, the total labor flexible budget variance will be:___________.

a. Favorable
b. Unfavorable
c. Equal to labor rate variance
d. Unable to be determined

Answer 1

b. Unfavorable

Step-by-step explanation:

If the Actual labour cost exceed the Budgeted labour cost we will have an unfavourable total labor flexible budget variance.