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LO 8.3What are some possible reasons for a direct labor time variance? utility usage decrease less qualified workers office supplies spending sales decline
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LO 8.3What are some possible reasons for a direct labor time variance?

utility usage decrease
less qualified workers
office supplies spending
sales decline

User TheDoomDestroyer
by
6.8k points

1 Answer

3 votes

Answer:

The correct answer is letter "B": less qualified workers.

Step-by-step explanation:

Direct labor rate variance analyses the current cost of direct labor and the regular cost of direct labor over the same operations period. Direct labor rate variance can be caused due to minimum wage increase, hiring less qualified employees or inappropriate cost budget setting.

User Brudus
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