An unfavorable labor efficiency variance is created when: Multiple Choice actual labor hours worked exceed standard hours allowed. actual hours worked are less than standard hours allowed. actual wages paid are less than amounts that should have been paid. actual units produced exceed budgeted production levels. actual units produced exceed standard hours allowed.

actual labor hours worked exceed standard hours allowed.

Explanation:

In simple words, The variation in labor productivity tests the capacity to employ labor as expected. This variability is measured as the discrepancy between both the real working hours used only to manufacture an element, magnified by the standard labor rate, and the standard amount that would have been used.

Thus, from the above we can conclude that the correct option is A.