Asked by
DAISY MARIE MARINAS
on Nov 13, 2024
Verified
The use of an inexperienced worker instead of an experienced employee can result in a favorable labor price variance but probably an unfavorable quantity variance.
Labor Price Variance
The difference between the actual cost of labor and the standard cost expected for that labor, used in budgeting and cost management.
Quantity Variance
Quantity variance refers to the difference between the expected and actual quantity of materials or inputs used in the production process, impacting cost.
- Discern and clarify the variations in expenditures for overhead, labor, and material supplies.
- Understand how standard costs contribute to management planning, control, and decision making.
Verified Answer
AM
Learning Objectives
- Discern and clarify the variations in expenditures for overhead, labor, and material supplies.
- Understand how standard costs contribute to management planning, control, and decision making.