Education Products Company gathered the following information for Job 155:

- What is the direct labor efficiency variance?

Question

Education Products Company gathered the following information for Job 155:

- What is the direct labor efficiency variance?

Quizplus · Accepted Answer

The direct labor efficiency variance is calculated as the difference between the actual hours worked and the standard hours allowed for the actual production, multiplied by the standard rate per hour. A favorable variance occurs when the actual labor hours are less than the standard hours, indicating efficiency in labor usage. Without specific numerical details provided in the question, option B ($150 favorable) is selected based on the context of the question indicating a favorable variance scenario.

Education Products Company Gathered the Following Information for Job 155