A New Factory Manager Was Hired for a Company That

question 18

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.This could produce a(n) ________.

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

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Definitions:

Preferred Means

Typically refers to the most favored or desirable method, tool, or approach to achieve a goal or fulfill a need.

Chronic Renal Failure

A long-term condition where the kidneys gradually lose their ability to function, leading to the accumulation of waste materials and electrolytes in the blood.

Serum Potassium

The concentration of potassium in the blood serum, critical for nerve and muscle cell function.

Sodium Polystyrene Sulfonate

A medication used to treat high levels of potassium in the blood.