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A company was experiencing slow production rates, and lower production volumes than demanded by management, so a new factory manager was hired. Upon investigation, she

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A company was experiencing slow production rates, and lower production volumes than demanded by management, so a new factory manager was hired. Upon investigation, she found that the workers were poorly motivated and not closely supervised. Midway through the quarter, she started an incentive program and paid out cash bonuses 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, and she was worried about the impact of these costs on operating income. This situation could have produced a(n): Unfavorable direct materials cost variance. unfavorable direct materials efficiency variance. favorable direct labor efficiency variance. favorable direct labor cost variance. Discount Sales Company uses standard costing to manage their direct costs and overhead costs. Overhead costs are allocated based on direct labor hours. In the first quarter, Discount Sales had a favorable cost variance for their variable overhead coasts. Which of the following scenarios would be a reasonable explanation for that variance? The actual number of direct labor hours was lower than the budgeted hours. The actual variable overhead costs were higher than the budgeted costs. The actual variable overhead costs were lower than the budgeted costs. The actual number of direct labor hours was higher than the budgeted hours. Discount Sales Company uses standard costing to manage their direct coots and their overhead costs. Overhead costs are allocated based on direct labor hours. In the first quarter, Discount Sales had a favorable efficiency variance for their variable overhead costs. Which of the following scenarios would be a reasonable explanation for that variance? T he actual number of direct labor hours was lower than the budgeted hours. The actual variable overhead costs were higher than the budgeted costs. The actual variable overhead costs were lower than the budgeted costs. The actual number of direct Labor hours were higher than the budgeted hours. Quality Brand Products uses standard coding to manage their direct costs and their overhead costs. Overhead costs are allocated based on direct labor hours. In the first quarter. Quality Brand had an unfavorable cod variance for their variable overhead costs. Which of the following scenarios would be a reasonable explanation for that variance? The actual number of direct labor hours was lower than the budgeted hours. The actual variable overhead costs were higher than the budgeted costs. The actual variable overhead costs were lower than the budgeted costs. The actual number of direct labor hours was higher than the budgeted hours. Quality Brand Products uses standard coding to manage their direct costs and their overhead costs. Overhead costs are allocated based on direct labor hours. In the first quarter. Quality Brand had an unfavorable efficiency variance for their variable overhead costs. Which of the following scenarios would be a reasonable explanation for that variance? The actual number of direct labor hours were lower than the budgeted hours. The actual variable overhead costs were higher than the budgeted costs. The actual variable overhead costs were lower than the budgeted costs. The actual number of direct labor hours was higher than the budgeted hours

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