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An adverse labour efficiency variance together with a favourable labour rate variance may mean that:

a. The business is paying a higher hourly rate than the standard b. Less labour hours are needed to make the same amount of output c. Less skilled staff are being used in production d. More products are being made per hour

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2014/10/31
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Option C : less skilled staff are at work.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

c. Less skilled staff are being used in production

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