An unfavorable labor efficiency variance can result from the payment of overtime premiums unmotivated workers faulty equipment poor quality materials
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The question asks what factors can lead to an unfavorable labor efficiency variance. An unfavorable variance means that more labor was used than expected for the level of output. Show more…
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which of the following is a possible cause of an unfavorable labor efficiency variance? A. hiring substandard workers B. making to many units C. buying higher-quality material D. paying too much for workers
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Loren Company recently purchased materials from a new supplier at a very attractive price. The materials were found to be of poor quality, and the company's laborers struggled significantly as they shaped the materials into finished products. In a desperate move to make up for some of the time lost, the Loren Company manufacturing supervisor brought in more senior employees from another part of the plant. Which of the following variances would have a high probability of arising from both of these situations? a. Material quantity variance unfavorable b. Labor rate variance unfavorable c. Material price variance favorable d. Labor efficiency variance unfavorable e. All of the answers are correct
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Justin Co. recently purchased materials from a new supplier at a very attractive price. The materials were found to be of poor quality, and the company's laborers struggled significantly as they shaped the materials into the finished product. In a desperate move to make up for some of the time lost, the manufacturing supervisor brought in more senior employees from another part of the plant. Which of the following variances would have a high probability of arising from this situation? a. Both Material Price variance, favorable and Labor rate variance, favorable b. Material price variance, unfavorable. c. Labor rate variance, unfavorable. d. Material quantity variance, favorable. e. Labor efficiency variance, favorable.
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