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.
Step by Step Answer:
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