The production manager of a company, in an effort to gain a promotion, negotiated a new labor contract with the factory employees that required them to bear a greater percentage of benefit costs than before, thus bringing down the cost of direct labor to
the company. Shortly afterward, several experienced and highly skilled workers resigned, and were replaced by new employees whose work was very slow during their training period. At the end of the quarter, the company's profits fell 10%. 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
B
You might also like to view...
The "Rule of One" underlies the premise that all costs are
a. variable. b. fixed. c. unit-based. d. short-term.
After you have been interviewed, it is a good strategy to immediately send the interviewer a(n) _____
Fill in the blank(s) with correct word
Before franchises may be sold, the parent company must:
a. register with the SEC under the 1933 Securities Act b. register with the SEC under the Investment Company Act c. register with the CFTC Franchise Offering Rule of 1990 d. be approved by the Federal Trade Commission e. none of the other choices
The U.S. Postal Service posted a $5.1 billion loss in the 2011 fiscal year. Analysts attribute much of the system's financial problems to a marked decline in the volume of mail, since more people are using email
What business force is at play in this example? A) economic B) technological C) demographic D) global E) social