ill and calls for 7. Possible causes for an unfavorable labor efficiency varianc
ID: 2518905 • Letter: I
Question
ill and calls for 7. Possible causes for an unfavorable labor efficiency variance include a. insufficient demand for the company's products ers to do work that requires little skill and b. overtime work paid at premium rates c. using highly skilled and highly paid workers to do work that requires lower hourly rates of pay. d. all of the above are possible causes. dard direct labor- 8. Variable manufacturing overhead is applied to products on the basis of standard direct la hours. If the direct labor efficiency variance is unfavorable, the variable overhead efficiency variance will be: A. favorable. B. unfavorable. C. either favorable or unfavorable. D. zero. 9. If the labor efficiency variance is unfavorable, then A. actual hours exceeded standard hours allowed for the actual output. B. standard hours allowed for the actual output exceeded actual hours. C. the standard rate exceeded the actual rate. D. the actual rate exceeded the standard rate.Explanation / Answer
7 Insufficient demand for the company's products is possible cause for an unfavorable labor efficiency variance 8 The variable overhead efficiency variance will be unfavorable 9 If the labor efficiency varaince is unfavorable then actual hours exceeded standard hours allowed for the actual output.
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