Hi All,

My fellow engineers and I are debating the right way to calculate the Direct Labour Efficiency Variance for the following problem. I think we're thinking about it too complicatedly.

I've over simplified the actual problem for the purpose of easy discussion as follows:

Calculate the total Direct Labour Efficiency Variance:

Standard Time to Complete Job: 17 Weeks
Actual Time to Complete Job: 18 Weeks

Standard Engineers Count: 114
Standard Weekly Rate: R750
Actual Engineers Count: 108
Actual Weekly Rate: R825