ELM Corporation Introduced a New Automated Production Process That Has

question 44

Multiple Choice

ELM Corporation introduced a new automated production process that has reduced the amount of labour needed, but not affected the use of materials. The standard cost system has not been changed yet to reflect this new process. Assuming the machinery is functioning properly and that workers were properly trained in its use, which of the following variances is most likely to result?

• A) Favourable variable overhead spending variance
• B) Favourable direct labour efficiency variance
• C) Unfavourable direct labour efficiency variance
• D) Favourable direct materials price variance

---

Definitions:

Brain Development

The process of growth and maturation of the brain over time, including the formation of neurons, synapses, and the strengthening of neural pathways.

Multidimensional

Having or relating to multiple aspects or features that add complexity.

Multidirectional

This term refers to development or change that occurs in multiple directions, not following a single, linear path.

Historical Context

The background information or circumstances surrounding an event or era that help in understanding its implications.