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Zoom Tech Ltd investigates all variances above 10 percent of the flexible budget. The flexible budget for direct labour is $50,000. The direct labour rate

  1. Zoom Tech Ltd investigates all variances above 10 percent of the flexible budget. The flexible budget for direct labour is $50,000. The direct labour rate variance is $4 000 unfavourable, and the direct labour efficiency variance is $6,000 favourable.

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Provide two possible explanations for each variance identified in this question.

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