A favorable efficiency variance for direct manufacturing labor indicates that ________.
A) a lower wage rate than planned was paid for direct labor
B) a higher wage rate than planned was paid for direct labor
C) less direct manufacturing labor-hours were used during production than planned for actual output
D) more direct manufacturing labor-hours were used during production than planned for actual output

Question

Quizplus · Accepted Answer

A favorable efficiency variance for direct manufacturing labor means that less direct manufacturing labor-hours were used during production than planned for actual output. This could be due to various reasons such as improved production processes, better worker skills, or more efficient use of equipment.

A Favorable Efficiency Variance for Direct Manufacturing Labor Indicates That