Which of the following statements regarding variances is valid?

Which of the following statements regarding variances is valid?
A . Using higher quality material than standard could explain an adverse labour efficiency variance.
B . Improved maintenance of production machinery could explain an adverse material usage variance.
C . An adverse labour rate variance could explain a favourable labour efficiency variance.
D . Poor supervision could explain a favourable labour rate variance.

View Answer

Answer: C

Explanation:

Reference: https://accounting-simplified.com/management/variance-analysis/labor/rate.html