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Ken Garrett.
Ken Garrett.Viewing 2 posts - 1 through 2 (of 2 total)
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maximus07
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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 onlyAnswer 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.
Ken Garrett
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Surely efficiency is linked to productivity, so only Reason 3.
maximus07
Ken GarrettViewing 2 posts - 1 through 2 (of 2 total)
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