Match the variance with its correct calculation.
-Labor Efficiency Variance
A)Actual Quantity × Actual Price
B)(Actual Hours × Actual Rate) − (Standard Hours × Standard Rate)
C)(Actual Quantity × Actual Price) − (Standard Quantity × Standard Price)
D)(Actual Hours − Standard Hours) × Standard Rate
E)(Actual Price − Standard Price) × Actual Quantity
F)Standard Quantity × Standard Price
G)(Actual Rate − Standard Rate) × Actual Hours
H)(Actual Quantity − Standard Quantity) × Standard Price

Question

Quizplus · Accepted Answer

Labor Efficiency Variance is calculated as the difference between the actual hours worked and the standard hours that should have been worked, multiplied by the standard rate per hour. This measures how efficiently labor time is used relative to the standard. The correct formula is represented by option D: (Actual Hours − Standard Hours) × Standard Rate.

Match the Variance with Its Correct Calculation