Intentional worker damage is most likely to result in which type of variance?
A) Direct materials price variance
B) Direct materials efficiency variance
C) Direct labor price variance
D) Variable overhead spending variance

Question

Quizplus · Accepted Answer

Intentional worker damage is related to the efficiency of direct materials usage, which affects the direct materials efficiency variance. This variance measures the difference between the amount of direct materials that should have been used for the actual level of output and the amount of direct materials actually used. The intentional damage caused by the workers can result in a higher amount of direct materials being used compared to what was originally planned, leading to a negative efficiency variance. The other variances listed are not directly related to intentional worker damage.

Intentional Worker Damage Is Most Likely to Result in Which