Which of the Following Is Characteristic of Direct Labour Variances

Multiple Choice

Which of the following is characteristic of direct labour variances?

A) The labour efficiency variance measures the difference between what was paid to direct labourers and what should have been paid.
B) The labour rate and labour efficiency variances will always add up to the total labour variance.
C) The labour rate variance measures the difference between the labour hours that were actually used and the labour hours that should have been used.
D) The labour rate variance measures the difference between the labour hours that were originally budgeted and the labour hours that should have been used.