The Production of a Company Was Experiencing a High Defect

question 64

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)favorable direct labor cost variance.
• C)favorable direct labor efficiency variance.
• D)unfavorable direct materials efficiency variance.

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Definitions:

APR

Annual Percentage Rate; the annual rate charged for borrowing or earned through an investment, including any fees or additional costs associated with the transaction.

Mortgage

A loan used by individuals and businesses to purchase real estate without paying the entire purchase price upfront, wherein the property itself serves as collateral for the loan.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed.

Security Deposit

A sum of money held in trust either as an initial part-payment in a purchasing process or as a guarantee for the performance of a specified action.