A New Factory Manager Was Hired for a Company That

question 164

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,and the manager was worried about the impact of these costs on operating income.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:

Standard Error

The standard deviation of the sampling distribution of a statistic, most commonly the mean.

Confidence Interval

A set of values based on sample statistics, expected to include an unknown population parameter.

Sample Proportion

The fraction of the sample observations that belong to a particular category, often used as an estimator of the population proportion.

Hazardous Waste Site

Locations where waste materials harmful to humans or the environment are stored, treated, or disposed of.