Author Question: Handley Manufacturing Company has prepared the following flexible budget for August and is in the ... (Read 86 times)

lunatika · **on:** Mar 6, 2021

Handley Manufacturing Company has prepared the following flexible budget for August and is in the process of interpreting the variances. F denotes a favorable variance and U denotes an unfavorable variance.

The most likely explanation of the above direct manufacturing labor variances is that ________.
◦ the average wage rate paid to employees was less than expected
◦ employees did not work as efficiently as expected to accomplish the job
◦ the company may have assigned more experienced employees this month than originally planned
◦ management may have a problem with budget slack and might be using lax standards for both labor-wage rates and expected efficiency

meltdown117 · **Reply #1 on:** Mar 6, 2021

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