Question
A company incurred the following production variances for product X during February: Direct material price variance Direct material quantity variance Direct labor efficiency variance
A company incurred the following production variances for product X during February: Direct material price variance Direct material quantity variance Direct labor efficiency variance Direct labor rate variance Variable overhead rate variance Variable overhead efficiency variance $10,000 Favorable $15,000 Unfavorable $20,000 Favorable $25,000 Unfavorable $12,500 Unfavorable $11,000 Unfavorable What is a possible reason for the labor rate variance based on these results?
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
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