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The direct labor efficiency variance could be the result of: Explain Quality of Raw Materials All...

The direct labor efficiency variance could be the result of: Explain

Quality of Raw Materials

All of the other answers are correct

Maintenance of Equipment

Training of Employees
Business   Accounting   
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Answer #1

OPTION B------ All of the answers are correct

Direct Labor Efficiency variance could be result of quality of raw materials, maintenance of equipment, training of employees.

Direct Labor Efficiency variance

=(Actual hours * Standard Rate) - (Standard hours *Standard rate)

Hence if maintenance of equipment is done then machines will run smoothly, actual hours will be taken less which improves labor efficiency.

If training of employees is given , employees will perform the task better and will complete it in less time which improves labor efficiency variance.

Quality of raw materials which are easier to handle improves the direct labor efficiency variance.

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