Labor efficiency is measured by the
A) materials quantity variance.
B) total labor variance.
C) labor quantity variance.
D) labor rate variance.

Question

Quizplus · Accepted Answer

Labor efficiency is measured by the labor quantity variance, which calculates the difference between the actual hours worked and the standard hours allowed for the work performed. The labor quantity variance shows whether the workforce is working efficiently or not. The other options (materials quantity variance, total labor variance, and labor rate variance) do not specifically measure labor efficiency.

Labor Efficiency Is Measured by the