LO 8.5Which of the following is a possible cause of an unfavorable labor rate variance?

hiring too many workers

hiring higher-quality workers at a higher wage

making too many units

purchasing too much material

hiring higher-quality workers at a higher wage

Explanation:

Possible causes of unfavorable labor rate variances include:

An increase in pay for employees.

Working overtime hours paid at a premium above the basic rate.

Using direct labor employees who were more skilled and experienced than the 'normal' and who are paid more than the standard rate per hour (adverse rate variance).

Based on the above discussion, the answer is hiring higher-quality workers at a higher wage