The following information describes a company's usage of direct labor in a recent period: Actual direct labor hours used Actual rate per hour Standard rate per hour Standard hours for units produced How much is the direct labor efficiency variance?

The Direct labor efficiency variance checks the how well staff are actually utilizing labor hours vs how they are expected to be utilizing it and is calculated by the formula;

Direct Labor Efficiency variance = (Standard hours – Actual hours) x Standard rate

Direct Labor Efficiency variance = ( 43,000 - 41,000 ) * 13

Direct Labor Efficiency variance = $26,000

As the Standard hours are higher than the actual hours used, this is considered a Favorable Variance.

The following information describes a​ company's usage of direct labor in a recent​ period: Actual direct labor hours used Actual rate per hour Standard rate per hour Standard hours for units produced How much is the direct labor efficiency​ variance?

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The following information describes a company's usage of direct labor in a recent period: Actual direct labor hours used Actual rate per hour Standard rate per hour Standard hours for units produced How much is the direct labor efficiency variance?