Explanation Direct labor Inefficiency Variance: The product of difference between standard hour rate actual hour rate, and standard direct labor is known as direct labor inefficiency variance. The variance can be favorable or unfavorable. Direct labor inefficiency variance can be unfavorable ...

7th Edition

ISBN: 9781337116008

Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher: South Western Educational Publishing

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Chapter 10, Problem 15DQ

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Recommend some possible reasons which causes unfavorable labor efficiency variance.

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Chapter 10 Solutions

Managerial Accounting

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Recommend some possible reasons which causes unfavorable labor efficiency variance.

Solution Summary: The author explains that direct labor inefficiency variance can be favorable or unfavorable if the actual hours worked are more than the standard hours allowed. Inefficiency among labor, abnormal breakdowns and poor quality of materials increase idle time

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Recommend some possible reasons which causes unfavorable labor efficiency variance.

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Chapter 10 Solutions