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If the labor efficiency variance is unfavorable, then a.standard hours allowed for the actual output exceeded actual hours. b. the standard rate exceeded the actual rate. c. the actual rate exceeded the
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If the labor efficiency variance is unfavorable, then

a.standard hours allowed for the actual output exceeded actual hours.
b. the standard rate exceeded the actual rate.
c. the actual rate exceeded the standard rate.
d. actual hours exceeded standard hours allowed for the actual output.

User Thejesh GN
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Answer: The correct answer is "d. actual hours exceeded standard hours allowed for the actual output.".

Explanation: The variation in work efficiency is equal to the real hours minus the standard hours plus the standard rate.

(AH - SH) × SR = Variation in work efficiency.

Therefore, if the actual hours are greater than the standard hours, an unfavorable variation occurs.

AH > SH = unfavorable variation.

AH < SH = favorable variation.

User Kaganar
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