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14 June, 20:17

LO 8.3What are some possible reasons for a direct labor time variance?

utility usage decrease

less qualified workers

office supplies spending

sales decline

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Answers (1)
  1. 14 June, 23:21
    0
    The correct answer is letter "B": less qualified workers.

    Explanation:

    Direct labor rate variance analyses the current cost of direct labor and the regular cost of direct labor over the same operations period. Direct labor rate variance can be caused due to minimum wage increase, hiring less qualified employees or inappropriate cost budget setting.
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