and direct labor starndards for one of theik popuiar products were as follows Ma

Question

and direct labor starndards for one of theik popuiar products were as follows Materials Labor 1. pounds per unt 14.00 per pound 2.0 hours per unit, $18.00 per hour During the first quarter, Faas produced 5,000 units of this product. At the end of the quarter, an examination of the bor direct labor efficiency variance was $18,000 U. Which of the folowing would be a logical explanation for this vanane ds showed that the company uaed 11,000 hours of direct oor and achal dvect lator cosls wne $184,800 The O A. The company used a higher quantity of materials than allowed by standards O B. The company used more labor hours than alowed by standands O C. The company paid a higher price for the materials than allowed by standards O D. The company paid a higher rate for labor than alowed by standards

Explanation / Answer

ANswer is

Company used more labor hour than allowed standared

As the Labor efficeny varaince is unfavorable it show that the labor is used more than the standared

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