Star Industries computes variances as a basis for evaluating the performance of managers responsible for controlling costs. For several months the labor quantity variance has been unfavorable. Briefly explain what could be causing the unfavorable labor quantity variance and indicate what type of corrective action if any might be taken.

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The Answer of Star Industries computes variances as a basis for evaluating the performance of managers responsible for controlling costs. For several months the labor quantity variance has been unfavorable. Briefly explain what could be causing the unfavorable labor quantity variance and indicate what type of corrective action if any might be taken.

Star Industries Computes Variances as a Basis for Evaluating the Performance