Question: The direct labor efficiency variance is caused by A. Lack of efficiency in preparing the budget. B. Using more or less direct labor than the

The direct labor efficiency variance is caused by A. Lack of efficiency in preparing the budget.

B. Using more or less direct labor than the standard allows.

C. Setting a higher or lower wage standard than is practical.

D. Paying more or less for direct materials than the standard allows.

Assembly line workers at Thompson Manufacturing worked a total of 12,000 direct labor hours to produce 36,000 units. The standard for producing one unit is 15 minutes at a wage rate of $10. If the actual wage rate was $10.50 per direct labor hour, Thompsons direct labor rate variance is A. $6,000 favorable

B. $6,000 unfavorable

C. $4,500 favorable

D. $4,500 unfavorable

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