Which of the following expressions is used to calculate the labor efficiency variance?
A) (Efficiency hours × Actual hours) - (Variance hours × Standard rate)
B) (Variance Rate × Actual Hours) - (Overhead Rate × Actual Hours)
C) (Actual Hours × Standard Rate) - (Standard Hours × Standard Rate)
D) (Overtime Hours × Actual Rate) - (Premium Hours × Actual Rate)
E) None of these

Question

Quizplus · Accepted Answer

The labor efficiency variance measures the difference between the actual hours worked and the standard hours that should have been worked at the actual level of output, multiplied by the standard rate. The expression (Actual Hours × Standard Rate) - (Standard Hours × Standard Rate) represents this calculation.

Which of the Following Expressions Is Used to Calculate the Labor