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7 years ago
A company's production department was experiencing a high defect rate on the assembly line, which was slowing down production and causing wastage of valuable direct 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 would produce a(n) ________.
A) favorable direct labor efficiency variance
B) unfavorable direct materials efficiency variance
C) unfavorable direct materials cost variance
D) favorable direct labor cost variance
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Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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7 years ago
This was certainly a tough question, loving the expertise
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