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
C)The number of
D)None of these ans choices are correct.

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 goods produced, as the variance measures the difference between the actual hours used and the standard hours allowed for the actual output. Using the static budget or the number of employees would not accurately reflect the efficiency variance.

The Standard Number of Direct Labor Hours Used in Calculating