ECONOMICS

Detailed explanation-1: -So, if the employees are working more hours than allowed for the actual number of units produced, the total actual hours will be more than the standard hours resulting in an unfavourable efficiency variance.

Detailed explanation-2: -Unfavorable labor variances occur when the wages and costs associated with labor are higher than expected. There are a variety of factors that can cause an unfavorable labor variance. Employee pay structures and skill levels can create unfavorable variances.

Detailed explanation-3: -An unfavorable variance can occur due to changing economic conditions, such as lower economic growth, lower consumer spending, or a recession, which leads to higher unemployment. Market conditions can also change, such as new competitors entering the market with new products and services.