830 What does a favorable labor efficiency variance mean A L

8-30 What does a favorable labor efficiency variance mean? A. Labor rates were higher than standard. B. Inexperienced labor was used, causing the rate to be lower than standard. C. More labor was used than called for by standards. D. Less labor was used than called for by standards.

Solution

Labour efficiency- It means that how the efficient the workers or labour in completing the task. How much time they take to complete the work.

Variances- It is the comparison of actual with standard work.

Labour efficiency variance - It the comparison of actual performance of labour with standard performance which set by mmanagement.If actual performance is better than standard performance then the Variance is favorable and vise-versa.

In the qustion if number of workers actually used is less than standard then it is favorable.

So, The answer is \"D\" option- less labour is used than called for by standards.