A company's production department was experiencing a high defect rate on the assembly line,which was slowing down production and causing a higher waste of valuable direct materials.The production manager decided to recruit some highly skilled production workers from another company to bring down the defect rate.This would produce a(n)________.
A) unfavorable direct materials cost variance
B) favorable direct labor cost variance
C) favorable direct labor efficiency variance
D) unfavorable direct materials efficiency variance

Question

Quizplus · Accepted Answer

Recruiting highly skilled workers would likely improve efficiency on the assembly line, leading to a favorable direct labor efficiency variance. It does not directly address the issue of direct materials and would not necessarily lead to a variance in direct materials cost or efficiency.

A Company's Production Department Was Experiencing a High Defect Rate