Vincent Bassani has come to the accounting department for help in interpreting

his variance report. He says that he understands that last month was not a very good

one for output, but he really thought everyone put forth good effort, so he is confused

about the existence of an unfavorable labor efficiency variance. He cites as an example

of the workers' effort their willingness to work extra hours to get full output, even when

a whole week's worth of production had to be scrapped. He knew that his materials

costs would be higher, and that overtime would make his rate variance unfavorable,

but he certainly didn't think his workers had been inefficient.

Required:

Write a short note to Vincent explaining the probable cause of the unfavorable labor efficiency variance