The variable manufacturing overhead efficiency variance usually indicates the product production time. It is calculated by determining the difference between the actual working hours and the standard set working hours, multiplied by the exact quantity of direct labor hours. When the direct labor efficiency variance is unfavorable, the variable manufacturing overhead efficiency variance is likely unfavorable. This implies that workers worked for more hours than expected for the actual level of production. Given that the variable manufacturing overhead is applied based on direct labor hours, the variable manufacturing overhead is unfavorable since more overhead costs will be incurred