Question 26 (6 points) Herbert's Camera Shop has prepared the following flexible budget for September and...

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Question 26 (6 points) Herbert's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Flexible Budget Price Variance Efficiency Variance Material A Material B $40,000 60,000 $1,000F 500U $3,000U 1,500F Direct manufacturing labor 80,000 500U 2,500F 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) d) the company may have assigned more experienced employees this month than originally planned management may have a problem with budget slack and might be using lax standards for both labor-wage rates and expected efficiency Question 26 (6 points) Herbert's Camera Shop has prepared the following flexible budget for September and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance. Flexible Budget Price Variance Efficiency Variance Material A Material B $40,000 60,000 $1,000F 500U $3,000U 1,500F Direct manufacturing labor 80,000 500U 2,500F 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) d) the company may have assigned more experienced employees this month than originally planned management may have a problem with budget slack and might be using lax standards for both labor-wage rates and expected efficiency