During a recent lengthy strike at Morell Manufacturing Company, management replaced striking assembly line workers with office workers. The assembly line workers had been paid $18 per hour while the office workers are only paid $10 per hour. What is the most likely effect on the labor variances in the first month of this strike?( please provide the necessary brief explanation to justify)

Labor Rate Variance Labor Efficiency Variance A) Unfavorable No effect

B) No effect Unfavorable

C) Unfavorable Favorable

D) Favorable Unfavorable

A.

Option A

B.

Option B

C.

Option C

D.

Option D