Labor Efficiency Variance Definition:

A measure of the difference between the actual hours taken to complete a task and the standard hours allowed, multiplied by the standard hourly labor rate.

Relevant Terms:

• Labor rate variance
• Labor Efficiency Variance
• Materials price variance
• Materials quantity variance

Other Related Accounting Articles:

• Labor Rate Variance Definition
• Materials Quantity Variance Definition
• Direct Labor Efficiency Variance
• Variable Overhead Efficiency Variance Definition
• Labor Rate Variance
• Materials Price Variance Definition
• Direct Labor Idle Time Variance
• Direct Material Price Variance
• Direct Material Usage Variance
• Importance of Variance