Barberry Limited had the following variances for March: 

Labour rate variance $ 800 

F Labour efficiency variance $2,400 

U In the past, Barberry employed 10 people in production. 

They included 6 senior workers and 4 assistants. In March, the company experimented with 5 senior workers and 5 assistants. 

Required: 

Answer both of the following questions in the box provided. 

a) Would you recommend that the change be continued? Why or why not? (3 marks) 

b) What impact could the change in labour mix have on Barberry’s material quantity variance? (2 marks)

Answer rating: 100% (QA)

a No I would not recommend that the change should be continued because although it resulted in fav... View the full answer