Which Formula Is Used to Calculate the Labour Efficiency Variance

question 171

Multiple Choice

Which formula is used to calculate the labour efficiency variance?

• A) (standard hours × actual hours) - (actual hours × standard rate)
• B) (actual rate × actual hours) - (standard rate × actual hours)
• C) (actual hours × standard rate) - (standard hours × standard rate)
• D) (standard hours × actual rate) - (actual hours × actual rate)

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Definitions:

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Tasks, duties, or responsibilities allocated to someone, or the transfer of legal rights from one party to another.

Valid Assignment

Legally effective transfer of rights, property, or obligations from one party to another.

Consideration

Something of value that is exchanged between parties in a contract, a critical element for the contract to be legally binding.

Implied Warranties

Guarantees that are not written down or explicitly stated but are understood to exist in a transaction, providing assurance that a product or service will meet certain standards.