If the employees who build the product go on strike and temporary workers who are slower and not as skilled are hired,which variance is directly impacted?

Question

Quizplus · Accepted Answer

The labor efficiency variance measures the difference between the actual and expected labor hours required to produce a certain quantity of output. In this case, if the employees who build the product go on strike and are replaced by temporary workers who are slower and not as skilled, it would directly impact the labor efficiency variance. The variance is likely to be unfavorable because the temporary workers are not as efficient as the regular workers.

If the Employees Who Build the Product Go on Strike