Intentional worker damage is most likely to result in which type of variance?
A) Direct materials price variance
B) Direct materials efficiency variance
C) Direct labour price variance
D) Variable overhead spending variance

Question

Quizplus · Accepted Answer

Intentional worker damage is more likely to affect the direct materials efficiency variance, as it is a result of workers using more or less materials than expected during production. It is less likely to impact direct materials price variance or variable overhead spending variance, which are influenced by external factors such as market prices and actual overhead costs. Direct labour price variance is influenced by changes in labour rates, which are also outside the control of individual workers.

Intentional Worker Damage Is Most Likely to Result in Which