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Unformatted text preview: than expected. This could be materials that arrived in bad condition or were mishandled and broken in the production process Labor rate variance was off because it cost more per hour to pay labor. Since more hours were worked, maybe there was overtime pay involved. Labor efficiency was slightly over the expected value, as more hours were worked. If materials were damaged in the process, or new workers were hired who had to train, this could explain why more hours worked....
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This note was uploaded on 09/04/2011 for the course ECON 161 taught by Professor Jamesbaker during the Fall '11 term at University of Houston.
- Fall '11