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12 November, 18:00

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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  1. 12 November, 18:05
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    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.
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