The direct labor efficiency variance can be the result of poor supervision or poor scheduling by divisional managers.

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The direct labor efficiency variance is the difference between the actual direct labor hours worked and the standard direct labor hours allowed for the production of a certain quantity of goods. Poor supervision or poor scheduling can result in workers not being able to work efficiently, leading to a larger difference between actual and standard hours and thus a direct labor efficiency variance.

The Direct Labor Efficiency Variance Can Be the Result of Poor