the difference between the actual labor hours and the standard labor hours, multiplied by the standard labor rate, is the:

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22-11-2022
Business

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the difference between the actual labor hours and the standard labor hours, multiplied by the standard labor rate, is the:

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contexto1026 contexto1026 · Answer 1 · 2022-11-27T14:24:45+01:00

The correct answer is direct labor efficiency variance. If the distinction of the particular hours and, therefore, the normal hours allowed square measure calculated, the corporate would assess how economical the assembly employees are in producing the product.

If actual labor hours square measure but the budgeted or normal quantity, the variable overhead potency variance is favorable; if actual labor hours square measure over the budgeted or normal quantity, the variance is unfavorable.

An unfavorable variance is the opposite of a positive variance wherever actual prices are unit but commonplace. Rising prices for direct materials or inefficient operations inside the assembly facility can explain associated unfavorable variance in production.

To learn more about labor efficiency variance, visit here.

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