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In a review of your income statement for this last period, a comparison of your widget sales to direct labor shows an unfavorable variance of

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In a review of your income statement for this last period, a comparison of your widget sales to direct labor shows an unfavorable variance of 8%. Sales increased by 20%, so you would expect an increase of 5% in direct labor. How might this be explained? The additional sales may have required staff to work overtime to meet the demand, thus increasing the payroll cost a higher percentage than budgeted. O It cannot be explained, so the higher sales are not worth it, and production should be stopped next month. Your production manager is not monitoring time and should be reprimanded for the error

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