Question 1200F Handley Manufacturing Company has prepared the following flexible budget for August and is in the process of interpreting the variances. Fdenotes a favorable variance and u denotes an unfavorable variance, Flexible Variances Budget Price Efficiency Material A $43.000 $1800F $32000 Material 61,000 SOOU Direct manufacturing labor 36.000 SOON 2500F The most likely explanation of the above direct manufacturing labor variances is that employees did not work as efficiently as expected to accomplish the job the average wage rate paid to employees was less than expected the company may have assigned more experienced employees this month than originally planned O magagement may have a problem with budget slack and might be using a standards for both labor wage rates and expected efficiency