The difference between the actual labor hours and the standard labor hours,multiplied by the standard labor rate,is the:
A)direct labor spending variance.
B)direct labor volume variance.
C)direct labor rate variance.
D)direct labor efficiency variance.

Question

Quizplus · Accepted Answer

The difference between actual labor hours and standard labor hours multiplied by the standard labor rate gives us the direct labor efficiency variance. This variance reflects the impact of labor efficiency or productivity on the cost of production, as it calculates the difference between the actual hours worked and the hours that should have been worked based on the production volume.

The Difference Between the Actual Labor Hours and the Standard