A favorable direct labor efficiency variance might indicate that A. lower skilled workers were paid a lower wage than expected. B. lower skilled workers were paid a higher wage than expected. C. higher skilled workers were used that performed the task slower than expected. D. higher skilled workers were used that performed the task faster than expected.

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Business

Jaylyn Sanford

30 January, 16:39

A favorable direct labor efficiency variance might indicate that A. lower skilled workers were paid a lower wage than expected. B. lower skilled workers were paid a higher wage than expected. C. higher skilled workers were used that performed the task slower than expected. D. higher skilled workers were used that performed the task faster than expected.

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Osvaldo Floyd · Answer 1

D. higher skilled workers were used that performed the task faster than expected.

Explanation:

Labor efficiency variance gives the relationship between the number of direct labor hours you budgeted and the actual hours worked for by the staff.

A favorable direct labor efficiency variance might indicate that higher skilled workers were used that performed the task faster than expected and thus resulting in higher profits.