A. direct variance
B. rate variance
C. labour variance
D. manufacturing variance
✅ The correct answer is option B.
Price variance for direct manufacturing labour is referred as rate variance. A rate variance is the difference between the actual price paid for something and the expected price, multiplied by the actual quantity purchased. The concept is used to track down instances in which a business is overpaying for goods, services, or labor.
Price variance for direct manufacturing labour is referred as rate variance. A rate variance is the difference between the actual price paid for something and the expected price, multiplied by the actual quantity purchased. The concept is used to track down instances in which a business is overpaying for goods, services, or labor.