The formula SR × (SH − AH)is the:
A)direct labor spending variance.
B)direct labor volume variance.
C)direct labor rate variance.
D)direct labor efficiency variance.

Question

Quizplus · Accepted Answer

The formula SR × (SH − AH) is used to calculate the direct labor efficiency variance, which measures the difference between the actual number of hours worked and the standard number of hours that should have been worked, multiplied by the standard rate per hour. This variance reflects how efficiently workers utilized their time and whether they were able to meet the expected level of output per hour. Therefore, the best choice is D, direct labor efficiency variance.

The Formula SR × (SH − AH)is The