A New Factory Manager Was Hired for a Company That

question 79

Multiple Choice

A new factory manager was hired for a company that was experiencing slow production rates,and lower production volumes than demanded by management.Upon investigation,the manager found that the workers were poorly motivated and not closely supervised.Midway through the quarter,an incentive program was initiated and cash bonuses were given when workers hit their production targets.Within a short time,production output increased,but the bonuses had to be charged to the direct labor budget,but the manager was worried about the impact of these costs on operating income.This situation could have produced a(n) ________.

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

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Definitions:

Styrene

An organic compound used in the production of polystyrene plastics and resins, characterized by its oily texture and sweet smell.

Polymerization Mechanism

A process by which monomer units are chemically bonded together to form polymer chains, governed by various types of reactions such as addition or condensation.

Monomer Structure

The basic unit or building block that can be repeated to form polymers through chemical bonds.

Polyurethane

A polymer composed of organic units joined by carbamate (urethane) links, used in foams, elastomers, and coatings.