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An un fav orable labor efficiency variance indicates that: budgeted labor hours exceed actual labor hours the budgeted labor rate exceeds the actual labor rate.

An unfavorable labor efficiency variance indicates that:

		budgeted labor hours exceed actual labor hours
		the budgeted labor rate exceeds the actual labor rate.
		actual labor hours exceed budgeted labor hours
		the actual labor rate exceeds the budgeted labor rate

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