An Unfavorable Direct Labor Efficiency Variance Could Be Caused By

question 22

Multiple Choice

An unfavorable direct labor efficiency variance could be caused by:

• A)an unfavorable materials quantity variance.
• B)an unfavorable variable overhead rate variance.
• C)a favorable materials quantity variance.
• D)a favorable variable overhead rate variance.

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Definitions:

Factory Departments

Specific areas within a factory, each dedicated to a particular stage of the manufacturing process or type of task.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Factory Equipment

Assets such as machinery and tools that are used in the production process within a manufacturing or production facility.

Factory Overhead

The indirect costs associated with manufacturing, including utilities, maintenance, and management salaries, but not including raw materials or direct labor.