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Guava Company manufactures specialized, decorative fruit containersthat require highly skilled labor. Guava uses standard costs to prepare its flexible budget. For the first quarter of

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Guava Company manufactures specialized, decorative fruit containersthat require highly skilled labor. Guava uses standard costs to prepare its flexible budget. For the first quarter of the year, direct materials and direct labor standards for one of their popular products were as follows: Direct materials: 4 pounds per unit; $3 per pound Direct labor: 4 hours per unit; $17 per hour Guava produced 5000 units during the quarter. At the end of the quarter, an examination of the labor costs records showed that the company used 21,000 direct labor hours and actual total direct labor costs were $380,000. The direct labor efficiency variance was $17,000 U. Which of the following is a logical explanation for this variance? The company paid a higher cost for the direct materials than allowed by the standards. The company used a higher quantity of direct materials than allowed by the standards. The company used more labor hours than allowed by the standards. The company paid a higher cost per hour for labor than allowed by the standards

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