A favorable direct labor efficiency variance and an unfavorable direct labor rat

Question

A favorable direct labor efficiency variance and an unfavorable direct labor rate variance might indicate which of the following? O A. O B. O C. O D. Skilled workers using more actual hours than standard, paid at a higher rate per hour than the standard rate Unskilled workers using less actual hours than standard, paid a lesser rate per hour than the standard rate Unskilled workers using more actual hours than standard, paid at a higher rate per hour than the standard rate Skilled workers using less actual hours than standard, paid at a higher rate per hour than the standard rate

Explanation / Answer

A Favourable direct labour efficieney variance and an unfavourable direct labour rate variance migh indicate the Skilled workers using less actual hours than standard, paid at a higher rate per hour than the standard rate.

So, Answer = Option D = Skilled workers using less actual hours than standard, paid at a higher rate per hour than the standard rate.

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