An unfavorable efficiency variance for direct manufacturing labor might indicate that ________.
A) there is unexpected increase in direct labor rates
B) work is scheduled inefficiently
C) lower-quality materials were purchased
D) more higher-skilled workers were scheduled than planned

Question

Quizplus · Accepted Answer

An unfavorable efficiency variance for direct manufacturing labor means that actual labor hours incurred were higher than the standard hours that should have been used for the production. This could be due to inefficient scheduling or poor utilization of labor hours. The other choices are not directly related to the efficiency variance for direct manufacturing labor.

An Unfavorable Efficiency Variance for Direct Manufacturing Labor Might Indicate