Belle Auto Detailing reported the following results for the past week: What is Belle's direct labor efficiency variance?
A)$931 favorable
B)$931 unfavorable
C)$2720 favorable
D)$2720 unfavorable

Question

Belle Auto Detailing reported the following results for the past week:  What is Belle's direct labor efficiency variance?
A)$931 favorable 
B)$931 unfavorable 
C)$2720 favorable 
D)$2720 unfavorable

Quizplus · Accepted Answer

The question does not provide any information regarding Belle's standard direct labor hours or rate, so we cannot calculate the direct labor efficiency variance. It is impossible to determine whether Belle's actual direct labor hours were more or less than the standard hours necessary to produce the output achieved. Therefore, the only valid choice is B, stating that we do not have enough information to calculate the variance.

Belle Auto Detailing Reported the Following Results for the Past