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Author Question: The direct labor efficiency variance is caused by (Read 82 times)

olsonmanny@gmail.com

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Question 1

The algebraic equation for the direct labor rate variance is
◦ direct labor rate variance = SQ × (AP - SP).
◦ direct labor rate variance = AP × (AQ - SQ).
◦ direct labor rate variance = SP × (AQ - SQ).
◦ direct labor rate variance = AQ × (AP - SP).

Question 2

The direct labor efficiency variance is caused by
◦ setting a higher or lower wage standard than is practical.
◦ paying more or less than the standard allows for total labor costs.
◦ lack of efficiency in preparing the budget.
◦ using more or less direct labor hours than the standard allows.


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Marked as best answer by olsonmanny@gmail.com on Feb 5, 2023

Harsh06

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olsonmanny@gmail.com

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Reply 2 on: Feb 5, 2023
Great answer, keep it coming :)


elyse44

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Reply 3 on: Yesterday
Excellent

 

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