Berman's Camera Shop has prepared a flexible budget for September and is in the process of interpreting the variances. Fav. denotes a favorable variance and Unfav. denotes an unfavorable variance. For Material A: $1,000 Fav, Price variance and $3,000 Untav. Quantity Variance. For Material B. $500 Unfav. Price variance and $1,500 Fav. Quantity Variance. For Direct labor: $500 Unfav. Rate variance and $2,500 Fav. Efficiency Variance. The most likely explanation of the above direct labor variances is that: O employees did not work as efficiently as expected to accomplish the job O the company may have assigned more experienced employees this month than originally planned O the average wage rate paid to employees was less than expected O management may have a problem with budget slack and might be using lax standards for both labor-wage rates and expected efficiency