Is the direct labor efficiency variance favorable or unfavorable?
A)favorable
B)unfavorable

Question

Quizplus · Accepted Answer

The direct labor efficiency variance measures the difference between the actual hours worked and the standard hours allowed for the actual output achieved. If actual hours are less than standard hours, the variance is favorable; if actual hours are more than standard hours, the variance is unfavorable. Therefore, an unfavorable variance means that more actual hours were worked than expected, indicating inefficient labor utilization.

Is the Direct Labor Efficiency Variance Favorable or Unfavorable