Cr 7. Standard Costing and Variance Analysis 21. A large labor efficiency variance is prorated to which of the following at year-end? Cost of Goods Sold No No Yes Yes WIP Inventory No Yes No Yes Finished Goods Inventory No Yes No Yes a. C. d. 22. A company would most likely have an unfavorable labor rate variance and a favorable labor efficiency variance if a. the mix of workers used in the production process was less experienced than the b. workers from another part of the plant were used due to an extra heavy production c. the purchasing agent acquired very high quality material that resulted in less spoilage. normal mix. schedule d. the mix of workers used in the production process was more experienced than the normal mix