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)________.

Question

Quizplus · Accepted Answer

The incentive program likely motivated workers to be more efficient, leading to increased production output, which would result in a favorable direct labor efficiency variance.

A New Factory Manager Was Hired for a Company That