(The labour hours that should have been used for actual production - the labour hours that were actually used for actual production) x standard rate per hour. Which variance is calculated using this formula?
A) Direct Labour Efficiency Variance
B) Direct Labour Total Variance
C) Direct Labour Rate Variance
D) Variable Overhead Efficiency Variance

Question

Quizplus · Accepted Answer

The formula calculates the Direct Labour Efficiency Variance, which measures the efficiency of labor by comparing the actual hours worked to the standard hours expected for the actual production level, multiplied by the standard rate per hour.

(The Labour Hours That Should Have Been Used for Actual