How Is the Direct Labor Efficiency Variance Calculated

question 125

Multiple Choice

How is the direct labor efficiency variance calculated?

• A)The difference between the standard labor hours allowed and the actual labor hours used multiplied by the actual labor rate
• B)The difference between the standard labor hours allowed and the actual labor hours used multiplied by the standard labor rate
• C)The difference between the standard labor hours and the actual labor hours used
• D)The difference between the standard labor rate and the actual labor rate

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