The sum of the labor mix and labor yield variances equals
A)the labor efficiency variance.
B)the total labor variance.
C)the labor rate variance.
D)nothing because these two variances cannot be added since they use different costs.

Question

Quizplus · Accepted Answer

The labor mix and labor yield variances are both components of the labor efficiency variance, which measures the efficiency of labor usage against the standard. When combined, they provide a comprehensive view of labor efficiency.

The Sum of the Labor Mix and Labor Yield Variances