"The difference between actual hours worked and standard hours allowed for the good units produced,multiplied by the standard labor rate" is a description of the
A)direct labor rate variance.
B)direct labor efficiency variance.
C)total direct labor cost variance.
D)direct labor quantity variance.

Question

Quizplus · Accepted Answer

This formula calculates the direct labor efficiency variance, which measures the difference between the actual time worked and the standard time allowed for the good units produced. The variance is multiplied by the standard labor rate to determine the cost impact of the difference in labor efficiency.

"The Difference Between Actual Hours Worked and Standard Hours Allowed