Berman's Camera Shop has prepared a flexible budget for September and is in the process of interpreting the variances. Fav. denotes a favorable variance and Unfav. denotes an unfavorable variance. For Material A: $1,000 Fav. Price variance and $3,000 Unfav. Quantity Variance For Material: $500 Untav. Price variance and $1,500 Fav. Quantity Variance For Direct labor: $500 Unfav. Rate variance and $2,500 Fav. Efficiency Variance The most likely explanation of the above direct labor variances is that: management may have a problem with budget slack and might be using lax standards for both labor-wage rates and expected efficiency the average wage rate paid to employees was less than expected employees did not work as efficiently as expected to accomplish the job the company may have assigned more experienced employees this month than originally planned