4. A debit balance in the labor efficiency variance indicates that a. Actual hours exceed standard hours b. Actual rate exceeds standard rate c. Standard hours exceed actual hours d. Standard rate exceeds actual rate 5. A company would most likely have an unfavorable labor rate variance and a favorable labor efficiency variance if a. The mix of workers used in the production was more experienced than the normal mix b. The mix of workers used in the production process was less experienced than the normal mix c. Workers from another part of the plant were used due to an extra heavy production schedule d. The purchasing agent acquired very high quality material that resulted in less spoilage