Question

What are some of the causes of an unfavourable labour quantity variance?

a) Newly hired employees are not properly trained.
b) Poor material had to be reworked.
c) Poor scheduling and carelessness on the part of management.
d) All of the above are causes.

Answer 1

An unfavorable labor quantity variance can be caused by newly hired employees not being properly trained, poor material needing to be reworked, and poor scheduling and carelessness by management.

Step-by-step explanation:

An unfavorable labor quantity variance can be caused by a variety of factors, including:

1. Newly hired employees are not properly trained: When newly hired employees are not adequately trained, they may take longer to complete tasks or make mistakes, leading to a higher labor quantity variance.
2. Poor material had to be reworked: If poor quality materials are used in the production process and have to be reworked, it can cause delays and increase the labor required, resulting in an unfavorable labor quantity variance.
3. Poor scheduling and carelessness on the part of management: Inefficient scheduling or careless management can lead to inefficiencies in allocating labor resources, resulting in higher labor quantity variance.

Therefore, the correct answer is d) All of the above are causes.