Handley Manufacturing Company has prepared the following flexible budget for August and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Material A Material B Direct manufacturing labor Flexible Variances Budget Price Efficiency $45,000 $2,000F $3,100U 62,000 84,000 800U 1,300F 700U 2,600F The most likely explanation of the above direct manufacturing labor variances is that A. the average wage rate paid to employees was less than expected B. employees did not work as efficiently as expected to accomplish the job C. the company may have assigned more experienced employees this month than originally planned D. management may have a problem with budget slack and might be using lax standards for both labor - wage rates and expected efficiency