Asked by
Kevin Garcia
on Oct 10, 2024
Verified
When more hours of labor time are necessary to complete a job than the standard allows, the labor efficiency variance is unfavorable.
Labor Efficiency Variance
The difference between the actual hours taken to complete a task and the standard hours allowed for the actual output, multiplied by the standard hourly labor rate.
Labor Time
The duration of time workers spend in the process of producing goods or providing services.
- Determine the elements contributing to discrepancies in material and labor expenses in manufacturing processes.
- Analyze the consequences of deviations on the cost and efficiency of materials.
Verified Answer
GM
Learning Objectives
- Determine the elements contributing to discrepancies in material and labor expenses in manufacturing processes.
- Analyze the consequences of deviations on the cost and efficiency of materials.
Related questions
When the Materials Price Variance Is Recorded at the Time ...
The Standard Price Per Unit for Direct Materials Should Reflect ...
Material Price Variances Are Often Isolated at the Time Materials ...
An Unfavorable Materials Quantity Variance Occurs When the Actual Quantity ...
If the Actual Hourly Rate Is Greater Than the Standard ...