7. Possible causes for an unfavorable labor efficiency variance include a insuff

Question

7. Possible causes for an unfavorable labor efficiency variance include a insufficient demand for the company's products b. overtime work paid at premium rates calls using highly skilled and highly puid workers to do work that requir lower hourly rates of pay d. all of the above are possible causes. 8. Variable manufacturing overhead is applied to products on the basis of standard direct labo 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 t C. the standard rate exceeded the actual rate. D. the actual rate exceeded the standard rate. he actual output exceeded actual hours.

Explanation / Answer

7 - Option D ( all of the above are possible causes)

8 - Option B ( unfavourable)

9 - Option A ( actual hours exceeded standard hours allowed for the actual output.

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