A favorable efficiency variance for direct materials might indicate:

A. that lower-quality materials were purchased

B. an overskilled workforce

C. poor design of products or processes

D. a lower-priced supplier was used

Question

Business

Jair Parks

11 August, 18:02

A favorable efficiency variance for direct materials might indicate:

A. that lower-quality materials were purchased

B. an overskilled workforce

C. poor design of products or processes

D. a lower-priced supplier was used

+5

Answers (1)

Know the Answer?

Jeramiah Kramer · Answer 1

B. an overskilled workforce

Explanation:

The efficiency variance is the difference between the projected and actual amount of resources needed to produce a unit of output. So, if the efficiency variance is favorable, it means that less material is used than it was planned according to historical data.

Among the following, the only answer indicating a favorable efficiency rate is an overskilled workforce. It is possible that the product is manufactured with less materials than planned, if the workforce uses the material in an extremely efficient manner.

A favorable efficiency variance for direct materials might indicate:A. that lower-quality materials were purchasedB. an overskilled workforceC. poor design of products or processesD. a lower-priced supplier was used

A favorable efficiency variance for direct materials might indicate:

A. that lower-quality materials were purchased

B. an overskilled workforce

C. poor design of products or processes

D. a lower-priced supplier was used