# Labor Efficiency Variance

The labor efficiency variance is the difference between the theoretical amounts of inputs required to produce an item and the standard amount that should have been used, multiplied by the standard labor rate. In manufacturing, efficiency variance can be used to analyze the effectiveness with respect to labor, materials, machine time and other production factors.

## Direct Labor Standards

Direct Labor Standards: Learning Objective of the articles: Define and explain “direct labor standards” . How direct labor rate and direct labor efficiency standards are set? Direct labor price and quantity standards are usually expressed in terms of a labor rate and labor hours.

## Direct Labor Yield Variance

Direct Labor Yield Variance: Learning Objective of the article: Define and explain labor yield variances. Calculate labor yield variance. Rate and efficiency variances of labor are explained on direct labor rate variance page and direct labor efficiency variance page respectively. Here, our focus is

## Labor Efficiency Variance Definition

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