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What is the importance of labor efficiency variance?

Before mentioning importance of labor efficiency variance, it is much important to note that labors are actually the backbone of any manufacturing unit. Now moving towards the topic that variances are very important because they helps us to know that how much efficientalabor is in delivering actual output produced by direct labor.

Thus this difference in itself is of great importance. We always try to deliversuch in-depth and detailed knowledge about each and every subject, therefore, learners can also seek for labor efficiency variance homework help from us.

  • Labor efficiency variance also helps to calculate the capacity to utilizelabor as per the projections.
  • It is also useful for highlighting areas involved in the process of production those are using more labor than expected.

Means for reducing the number of production hours

It can be done by –

  • Enhancing amount of automation.
  • Through streamlined design in order to reduce assembly line.
  • Through altering the amount of work flow.
  • With the help of decline in the amount of scrap produced by the process.

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