Answer:
There is a direct labor variance in the situation.
Explanation:
By standard costing, the gross difference between the actual direct labor cost and the budgeted direct labor cost for the gross number of units produced is divided into labor rate variance and labor quantity variance. This is called the labor efficiency variance formula.
let's take the example of a small business with a buget of budgets 210 labor hours for a month. The employees work 200 actual labor hours. Also, so if labor rate is $20 per hour. Your labor efficiency variance would be 210 minus 200, times $20, which equals a favorable $200.
To know more about direct labor variance, refer to this link:
https://brainly.com/question/28257510
#SP4
