An unfavourable labour quantity variance may be caused by
A)paying workers higher wages than expected.
B)paying workers a bonus at year end.
C)worker fatigue or carelessness.
D)higher pay rates mandated by union contracts.

Question

Quizplus · Accepted Answer

An unfavourable labour quantity variance occurs when more hours of labour are used than were planned for a level of production. This can be due to factors like worker fatigue or carelessness, which lead to inefficiencies in the amount of labour used, rather than the rate of pay, which would affect labour rate variance.

An Unfavourable Labour Quantity Variance May Be Caused by