Berman's Cnmern Shop has pepared a faxible budget for September and is in the process of interpreting the variances. Fav, denotes a lavorable variance and Untav. denotes an untavorabio variance. For Materlal A: 51,000 Fav, Price vatiance and $3,000 Unlav, Quanbly Variance. For Material B: $500 Unfav. Price variance and $1,500 Fav. Quantly Variance. For Oirect labor: $500 Untav. Aato variance and $2,500 Fav. Elficiericy Variance: The most likely explanation of the above direct laber variances is that: 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 the average wage rate paid to employees was less than expected management may have a problem with budget slack and might be using lax standards for both labor-wage rates and expected efficiency