
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 30
(2010 CPA Exam) Management has reviewed the standard cost variance analysis and is trying to explain an unfavorable labor efficiency variance of $8,000. Which of the following is the most likely cause of the variance?
A) The new labor contract increased wages.
B) The maintenance of machinery has been inadequate for these last few months.
C) The department manager has chosen to use highly skilled workers.
D) The quality of raw materials has improved greatly.
A) The new labor contract increased wages.
B) The maintenance of machinery has been inadequate for these last few months.
C) The department manager has chosen to use highly skilled workers.
D) The quality of raw materials has improved greatly.
Explanation
The correct answer is option "c". This i...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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