1. Zoom Tech Ltd investigates all variances above 10 percent of the flexible budget. The flexible budget for direct labour is $50,000. The direct labour rate variance is $4 000 unfavourable, and the direct labour efficiency variance is $6,000 favourable.

Required:

Provide two possible explanations for each variance identified in this question

Answer rating: 100% (QA)

Based on the information provided we can identify the following variances 1 Direct Labor Rate Varian... View the full answer