The standard number of direct labor hours used in calculating the direct labor efficiency variance is based on
A)the static budget.
B)the actual number of finished units produced.
C)the number of units on the production budget.
D)the number of

Question

Quizplus · Accepted Answer

The direct labor efficiency variance is calculated based on the actual number of finished units produced, as it measures the efficiency of labor used in producing those units compared to the standard hours allowed.

The Standard Number of Direct Labor Hours Used in Calculating