Direct labor efficiency variance

Direct labor efficiency variance is this variance tells managers how much of the total labor variance is due to using a greater or lesser amount of time than anticipated. It is calculated as follows: SR X (AH - SHA).

Definitions

According to Managerial Accounting by Braun, Tietz (5th edition),

Direct labor efficiency variance. This variance tells managers how much of the total labor variance is due to using a greater or lesser amount of time than anticipated. It is calculated as follows: SR X (AH - SHA).