diamond Steel Machine Shop normally uses a team of 6 skilled workers and 3 unskilled workers. The skilled workers are better than the unskilled workers in both speed and efficiency. In addition, the skilled workers are paid a much higher wage rate than the unskilled workers. During one month, the team consisted of 3 skilled workers and 6 unskilled workers. Based on this information, it is most likely that:

The Labor Rate Variance would be __________, and the Labor Efficiency Variance would be ___________.

Multiple Choice

• Favorable, Unfavorable

• Unfavorable, Favorable

• Favorable, Favorable

• Unfavorable, Unfavorable