Question 25)A company's production department was experiencing a high defect rate on the assembly line, which was slowing down production and causing wastage of valuable direct materials. The production manager decided to recruit some highly skilled production workers from another company to bring down the defect rate but was worried that the higher wages of these workers might negatively affect operating income. This would produce a(n)

A) Unfavorable direct materials cost variance

B)Unfavorable direct labor cost variance c)Unfavorable direct labor efficiency variance

D)Unfavorable direct materials efficiency variance

Question 29 )What does a favorable direct materials cost variance indicate?

A)The actual quantity of direct materials used was less than the standard quantity

B)The actual cost of deect materials purchased was Iess than the standard cost of drect materials purchased

c)The actual cost of drect materials purchased was eater than the standard cost of drect materials purchased

d)The actual quantity of drect materials used was eater than the standard quantity