The direct labor efficiency variance is caused by
A)lack of efficiency in preparing the budget.
B)using more or less direct labor hours than the standard allows.
C)setting a higher or lower wage standard than is practical.
D)paying more or less than the standard allows for total labor costs.

Question

Quizplus · Accepted Answer

The direct labor efficiency variance is caused by using more or less direct labor hours than the standard allows. This means that the actual direct labor hours worked are different from what was expected in the budget, which results in a variance.

The Direct Labor Efficiency Variance Is Caused by