An unfavorable direct labor efficiency variance could be caused by: (CMA adapted)
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.

Question

Quizplus · Accepted Answer

An unfavorable direct labor efficiency variance can occur if more time is taken to produce a product than expected. This could be due to poor quality materials, which would result in an unfavorable materials quantity variance as more materials are used than planned.

An Unfavorable Direct Labor Efficiency Variance Could Be Caused By