Which of the following factors is NOT likely to cause an

Solution

Direct Labour Efficiency Variance  measures time efficiency of labour. So it is affected by factors that increase or reduce labour time .   An unfavourable Direct Labour Efficiency Variance occurs when the actual hours worked exceed the standard hours allowed for the output produced.   

• Machine breakdowns means idle time leading to more hours used
• Poor supervision leads to lower productivity
• Old equipment would slow down work
• Unskilled labour means extra time required for same work.