The direct labor efficiency variance is caused by A. Lack of efficiency in preparing the budget.

B. Using more or less direct labor than the standard allows.

C. Setting a higher or lower wage standard than is practical.

D. Paying more or less for direct materials than the standard allows.

Assembly line workers at Thompson Manufacturing worked a total of 12,000 direct labor hours to produce 36,000 units. The standard for producing one unit is 15 minutes at a wage rate of $10. If the actual wage rate was $10.50 per direct labor hour, Thompsons direct labor rate variance is A. $6,000 favorable

B. $6,000 unfavorable

C. $4,500 favorable

D. $4,500 unfavorable