A favorable labor efficiency variance would result in a credit balance in the labor efficiency variance account.

Name: A favorable labor efficiency variance would result in a credit balance in the labor efficiency variance account.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A favorable labor efficiency variance means that actual hours worked were less than the standard hours allowed for producing the output, resulting in lower labor costs. This would result in a credit balance in the labor efficiency variance account.

A Favorable Labor Efficiency Variance Would Result in a Credit