The standard number of direct labor hours used in calculating the direct labor efficiency variance is based on
A)the static budget.
B)the actual number of finished units produced.
C)the number of units in the production budget.
D)the number of units sold.

Question

Quizplus · Accepted Answer

The standard number of direct labor hours used in calculating the direct labor efficiency variance is based on the actual number of finished units produced. This allows for a comparison between the actual labor hours used and the standard (or expected) labor hours for the actual production level.

The Standard Number of Direct Labor Hours Used in Calculating