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Direct labor

MM075y ago
Which of the following might explain an adverse direct labour cost variance? 1. Working overtime 2. Idle time 3. Poor productivity A. Reasons 1 and 2 only B. Reasons 1 and 3 only C. Reasons 2 and 3 only D. Reason 3 only Answer is D. I am clear about it. My question is if it ask for adverse direct labor efficiency variance so what will be answer? Like here, we are not including A and B as it is asking for direct labor cost and these are both indirect labor cost.
kengarrettkengarrettTutor5y ago#1
Surely efficiency is linked to productivity, so only Reason 3.
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