A union contract agreement calling for an immediate 4 percent increase in production worker wages was signed. No changes were made in the standards.
Indicate which of the following standard cost variances would be affected. More than one variance will be affected in some areas.
a. Materials price variance
b. Materials quantity variance
c. Labor rate variance
d. Labor efficiency variance
e. Variable overhead spending variance
f. Variable overhead efficiency variance
g. Fixed overhead budget variance
Answers: 1
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