Question
Sarah's Seamstresses employs 15 unskilled seamstresses and 8 skilled seamstresses. One week in November, 9 of the 15 unskilled workers called in sick with the
Sarah's Seamstresses employs 15 unskilled seamstresses and 8 skilled seamstresses. One week in November, 9 of the 15 unskilled workers called in sick with the stomach flu. Because the skilled seamstresses did not have enough work to do with the lower production by the unskilled seamstresses, some of the skilled seamstresses performed tasks normally done by unskilled seamstresses. What effect would this have on the company's direct labor variance? Select one:
a. The direct labor price variance would be unfavorable
b. The direct labor quantity variance would be unfavorable
c. The total direct labor variance would be unfavorable
d. The direct labor price variance would be favorable
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