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Which of the following is the most probable reason a company would experience an unfavorable labor rate variance and a favorable labor efficiency variance?

  • Defective materials caused more labor to be used in order to produce a standard unit.
  • The mix of workers assigned to the particular job was heavily weighted towards the use of new relatively low paid unskilled workers.
  • Because of the production schedule, workers from other production areas were assigned to assist this particular process.
  • The mix of workers assigned to the particular job was heavily weighted towards the use of higher paid experienced individuals.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9432206

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