 In this discussion, we will discuss the discussion question of define direct labor rate and efficiency variances and how they are used. If we see a discussion question or an essay question like this, we typically want to write more rather than less in an essay question. If we write more, we're more likely to touch on those areas that are looked for in order to give points. If we write more than is expected, we're usually not penalized. So if we have the time, we may as well do it. In a discussion question, we're really usually looking to add more to a conversation that may already have been started and therefore to do so, as long as we're writing relevant information, we want to add information to it. Keeping that in mind, let's read this one more time, define direct labor rate and efficiency variances and how they are used. So if we go into this process, then we can obviously define the direct labor rate variance, the direct labor efficiency variance. We can also take a step back from that.