The Production of a Company Was Experiencing a High Defect

question 84

Multiple Choice

The production of a company was experiencing a high defect rate on the assembly line,which was slowing down the production and causing wastage of valuable materials.The production manager decided to recruit some highly skilled production workers from another company to bring down the defect rate,but was worried that the higher wages of these workers might negatively affect operating income.This situation would have produced a(n) ________.

• A)unfavorable direct materials cost variance
• B)unfavorable direct labor cost variance
• C)unfavorable direct labor efficiency variance
• D)unfavorable direct materials efficiency variance

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Definitions:

Sample Size

The number of observations or units in a sample taken from a population for the purpose of statistical analysis.

Width of Confidence Interval

The measure of the precision or uncertainty of an estimation, calculated as the difference between the upper and lower bounds of the interval.

Sample Size

The quantity of collected data points or observations from a population aimed at conducting statistical analysis.

Upper Limit

The highest value that a variable or parameter can assume in a given context.