Direct labor efficiency variance
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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).
