List the direct labor variances and briefly describe each.
What will be an ideal response?
The direct labor variances are the direct labor cost variance and the direct labor efficiency variance.
The direct labor cost variance measures how well the company keeps direct labor cost per hour within standard. A direct labor cost variance is favorable (unfavorable) if the actual direct labor cost per hour is less (greater) than the standard direct labor cost per hour.
The direct labor efficiency variance measures how well the company keeps the actual usage of direct labor hours within standard. A direct labor efficiency variance is favorable (unfavorable) if the total number of direct labor hours actually used is less (greater) than the total allowed to manufacture the actual total quantity of units.
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