The direct labor efficiency variance is caused by
A)Lack of efficiency in preparing the budget.
B)Using more of less direct labor than the standard allows.
C)Setting a higher or lower wage standard than is practical.
D)None of these ans choices are correct.

Question

Quizplus · Accepted Answer

The direct labor efficiency variance is caused by using more or less direct labor than what the standard allows. This variance measures the difference between the actual hours worked and the standard hours allowed for the output achieved. It helps in identifying whether there was over-utilization or under-utilization of labor resources. The other options listed are not related to the direct labor efficiency variance.

The Direct Labor Efficiency Variance Is Caused by