The Production Manager of a Company Was Experiencing High Defect

Multiple Choice

The production manager of a company was experiencing high defect rate on the assembly line, which was slowing production and causing wastage of valuable materials. He decided recruit some highly skilled production workers from another company to bring down the defect rate, but he was worried that the higher wages of these workers might negatively impact operating income. This situation could have produced which of the following variances?

A) Unfavorable materials price variance
B) Unfavorable labor price variance
C) Unfavorable labor efficiency variance
D) Unfavorable materials efficiency variance