Question

A favorable efficiency variance for direct manufacturing labor indicates that: a. less direct manufacturing labor-hours were used during production than planned for actual output b. a lower wage rate than planned was paid for direct labor c. a higher wage rate than planned was paid for direct labor d. more direct manufacturing labor-hours were used during production than planned for actual output

Answer 1

Answer:

A- less direct manufacturing labor-hours were used during production than planned for actual output

Explanation:

A favorable labor efficiency variable indicates that the standard hours allowed to produce the actual output were higher than those actually used.

Therefore, less direct manufacturing labor-hours were used during production than planned for actual output