What Does an Unfavourable Labour Efficiency Variance Indicate

question 141

Multiple Choice

What does an unfavourable labour efficiency variance indicate?

• A) The actual labour rate was higher than the standard labour rate.
• B) The labour rate variance must also be unfavourable.
• C) Actual labour hours worked exceeded standard labour hours for the production level achieved.
• D) Overtime labour was used during the period.

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Definitions:

Increase Benefits

Enhancing the advantages or positive outcomes gained from a product, service, or activity.

Pricing Enhancement

Strategies implemented to adjust and improve the perceived value and price positioning of a product or service in the market.

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