The direct labour efficiency variance compares:
A) The standard cost for direct labour and the actual cost
B) The labour hours used to allocate fixed overhead and the actual labour hours used
C) The standard direct labour hours used for the output produced and the actual labour hours used
D) Direct labour hours and the supervisor's hours

Question

Quizplus · Accepted Answer

The direct labour efficiency variance compares the standard direct labour hours that should have been used to produce a given output with the actual labour hours used. It measures the cost impact of the difference between these two quantities. Therefore, choice C is the correct answer.

The Direct Labour Efficiency Variance Compares