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Question: Basix Inc. calculates direct manufacturing labor variances and has the following information:
- Actual hours worked: 200
- Standard hours: 250
- Actual rate per hour: $12
- Standard rate per hour: $10
Given the information above, which of the following is correct regarding direct manufacturing labor variances?
a. The price and efficiency variances are favorable.
b. The price and efficiency variances are unfavorable.
c. The price variance is favorable, while the efficiency variance is unfavorable.
d. The price variance is unfavorable, while the efficiency variance is favorable.
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