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Reasons of Labor efficiency variance:
• Change in design and quality standard• Poor working conditions
• Improper scheduling
Suggested course of solutions :
• Proper planning• Proper training
• Healthy working environment
• Timelines for achieving set targets
Reasons of Rate efficiency variance:
• Improper placement of labour• Increments / high labour wages
• Overtime
Suggested course of solutions :
• Time Scheduling for work performance• Proper job allocation according to capabilities of workers
