Accounting · Labour Efficiency Variance
CT Co. has found that it has had an increasing adverse labour efficiency variance for the last 6 months due to using many temporary workers to meet sales demand. Which TWO of the following control actions could CT Co. implement to try to eliminate this?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Decrease the standard time allowed per unit of product
- 2Reduce the number of supervisors overseeing production
- 3Offer overtime pay to existing skilled employees on a piecework basis and implement training for temporary employees✓
- 4Increase the hourly rate paid to temporary workers
Correct answer
Offer overtime pay to existing skilled employees on a piecework basis and implement training for temporary employees
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