The calculation of the labor efficiency variance is:
A)Standard Hourly Rate × (Standard Hours − Actual Hours).
B)Standard Hours × (Standard Rate − Actual Rate).
C)Actual Hours × (Standard Rate − Actual Rate).
D)Actual Rate × (Standard Hours − Actual Hours).

Question

Quizplus · Accepted Answer

The labor efficiency variance is calculated by multiplying the standard hourly rate by the difference between the standard hours (the hours that should have been worked) and the actual hours worked. This measures how efficiently labor time is used relative to the standard.

The Calculation of the Labor Efficiency Variance Is