Which of the following is the most probable reason a company would experience an unfavorable direct labor

Question:

Which of the following is the most probable reason a company would experience an unfavorable direct labor rate variance and a favorable direct labor efficiency variance? lop7 a The mix of workers assigned to the particular job was heavily weighted towards the use of higher paid experienced individuals.

b The mix of workers assigned to the particular job was heavily weighted towards the use of new, relatively low paid, unskilled workers.

c Because of the production schedule, workers from other production areas were assigned to assist this particular process.

d Defective materials caused more direct labor to be used in order to produce a standard unit.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost Accounting Concepts And Applications For Managerial Decision Making

ISBN: 9780070103108

2nd Edition

Authors: Ralph S. Polimeni, James A. Cashin, Frank J. Fabozzi, Arthur H. Adelberg

Question Posted: