A favorable direct labor efficiency variance might indicate that
A)higher skilled workers were used that performed the task slower than expected.
B)higher skilled workers were used that performed the task faster than expected.
C)lower skilled workers were paid a higher wage than expected.
D)lower skilled workers were paid a lower wage than expected.

Question

Quizplus · Accepted Answer

A favorable direct labor efficiency variance means that less time was taken than expected to complete the task. This could be due to higher skilled workers being used that performed the task faster than expected. Option A does not make sense as using higher skilled workers that perform the task slower than expected would result in an unfavorable variance. Options C and D are not related to labor efficiency and are not correct.

A Favorable Direct Labor Efficiency Variance Might Indicate That