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:

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions, knowledge—to oneself and others, and to understand that others have beliefs, desires, and perspectives different from one's own.

Mind Blindness

A cognitive disorder where an individual is unable to attribute mental states to others, affecting empathy and social interactions.

Autistic Spectrum Disorder

A range of neurodevelopmental conditions characterized by challenges with social skills, repetitive behaviors, and communication difficulties.

Postconventional

A stage of moral development characterized by an individual's ability to think beyond local customs and laws, considering universal ethical principles.