Which one of the following is defined as the difference between the actual direct labor hours worked and the standard direct labor hours allowed for the units manufactured, multiplied by the standard hourly wage rate per hour?
A) The direct labor price variance.
B) The direct labor efficiency variance.
C) The total direct labor standard cost variance.
D) The direct labor flexible-budget variance.
E) The direct labor operating-income variance.

Question

Quizplus · Accepted Answer

The difference between the actual direct labor hours worked and the standard direct labor hours allowed for the units manufactured is the direct labor efficiency variance. This variance measures the efficiency of the workforce in terms of labor hours used compared to the standard hours allowed for a given level of output. Multiplying the variance by the standard hourly wage rate per hour gives the dollar amount of the variance.

Which One of the Following Is Defined as the Difference