The direct labor efficiency variance can be the result of poor supervision or poor scheduling by divisional managers.

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Direct labor efficiency variance measures the difference between the actual labor hours used for production and the standard hours allowed for the actual output. If divisional managers schedule workers poorly, they may not be utilizing their time efficiently, resulting in wasted time and a direct labor efficiency variance. Similarly, if supervisors are not effectively managing their workers and ensuring they are using their time efficiently, this can also result in a direct labor efficiency variance.

The Direct Labor Efficiency Variance Can Be the Result of Poor